Short answer- No,
Sherman Oaks is not experiencing a broad, uniform price collapse. Instead the market shows mixed signals depending on the metric, the data source, and the pocket of the neighborhood. Some indices and zip codes show small declines while other measures show flat to modest gains. Zillow+2Redfin+2
What the numbers are saying
Different data sets tell slightly different stories. Zillow reports the average Sherman Oaks home value is roughly $1.31 million, down about 0.6 percent year over year. Zillow Redfin’s neighborhood view for October 2025 shows a median sale price near $1.42 million, essentially flat with a tiny 0.1 percent increase year over year. Redfin At the same time local listing-level trackers show higher medians for list price, with Altos reporting a median list price above $2.4 million in early December 2025. Altos Research
Region wide indicators also matter. The Case-Shiller Los Angeles index, which measures broader metro price levels, has moved slightly higher over the past year, signaling that on a city scale prices have not collapsed. That index was up modestly year over year as of late 2025. FRED+1
Why the numbers differ
There are four reasons you will see mixed results.
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Sample differences
Web portals, broker market updates, and statistical indices each use different pools of data. Zillow’s ZHVI smooths many types of homes while Redfin and local MLS reports might focus on actual closed sales for specific zip codes. That produces different year over year percentages. Zillow+1 -
Zip code and micro market divergence
Sherman Oaks is not one homogeneous block. Some zip codes, like parts of 91403 and 91423, have stronger demand and have recorded year over year gains. Other pockets are softer. Local neighborhood reports show variance from single digits up to double digit swings depending on the street and property type. Redfin+1 -
Inventory and listing behavior
Inventory levels and what sellers put on the market change the narrative quickly. Median list prices can be higher when a handful of expensive properties enter the market. Altos shows the median list price for Sherman Oaks lifted recently, even while some sold-price metrics are flat. That tells you selection of listings matters. Altos Research -
Mortgage rate and buyer affordability dynamics
Mortgage rates remain a major factor. When rates are elevated some buyers pause which cools transaction velocity and can produce softer sales prices in certain segments. At the same time, local demand from buyers who need to live near jobs or schools keeps pricing resilient in sought after pockets. National forecasts anticipate gradual easing of rates next year which could lift activity. Business Insider+1
What this means for sellers
If you are selling a Sherman Oaks home, price it to the current local comp set and be realistic about concessions and days on market. Higher-priced or uniquely appointed homes may need more marketing and time. For homes that are priced competitively and staged well there is still buyer demand. Local MLS and a neighborhood-knowledgeable agent will give the most actionable comparables. Realtor+1
What this means for buyers
Buyers can find opportunities. In pockets where sellers overreached there is room for negotiation. Watch sale-to-list ratios and days on market rather than just headline median numbers. If mortgage rates drop next year it may unlock more buyers and push multiple-offer pressure back into some price tiers. Redfin+1
A practical read on where we stand
Sherman Oaks is in a stable to mildly mixed phase. It is not in a broad deflationary spiral. Some data sources show slight declines over the past year and other sources show flat or modestly higher values. The real story is granular. Neighborhood, price tier, inventory, and timing determine whether an individual home has moved up or down in value.