As we begin 2016, I wanted to offer you some “quick Burbank market facts” in order to summarize what’s happened last year and what may be in the offing for this new year. First up, some “frothy” facts concerning Burbank real estate values and appreciation: In 2015, largely driven by strong demand and low supply, SFR values rose very nicely, with the median price rising to an incredible $676,000, representing a 5.4% increase from 2014. Now even for me, a Burbank Realtor working this market for now 29 years, that figure both pleases me, yet concerns me. I’m happy, of course, because I own Burbank property and it’s value is worth more. But as a real estate professional, I’m very concerned that not enough young Buyers can afford Burbank, as well under 20% of would be first time Buyers can afford that current median price! The growing inventory attests to that, as out of 93 current SFRs currently on the market (much higher than at the start of 2015), a paltry 13 are priced between the least expensive – $475,000 (on Buena Vista) and $650,000! The rest of the inventory is more expensive, with a top price of $3,950,000 (very inflated.) As is always the case, a hot real estate market always starts to cool and inventory build when AFFORDABILITY enters the picture. Another clue that confirms this is the fact that condo inventory has decreased to a mere 26 units, obviously because of demand and the lower price point. Obviously, with the passage of time, the inventory figures cited here will change. Please call me for a update!

What to expect in 2016? I think Burbank property will still see growth, yet along the lines of a more modest 3%. Inventory will grow, but still predominately above $700,000. Plus, we’ve already seen a slight uptick in the cost of money, i.e. interest rates, given the Fed’s action in December.