January 27, 2012

Simi Valley Home Sales Report YTD – October 31, 2009

Simi Valley Detached Home Sales October 2008Simi Valley California home sales were down in October 2009. This is very interesting in that the market has been pushed in a positive direction by the first-time home buyers tax credit. In  September and October buyers knew that the tax credit was scheduled to expire on November 30, this should have reflected in an increase in sales. So far, November sales of single-family detached homes will be stronger than October. Looking closer at these November sales, the majority are in the entry-level price range making this increased activity for November closely tied to the tax credit.

With the extension of the tax credit moved to April 30, 2010, activity should remain brisk as buyers try to take advantage one final time.

Key factors including the affordability, low interest rates, and low inventory are keeping first-time buyers and the investor market very interested in home purchases. While the economy struggles both nationally, statewide and regionally; home buyers and home sellers should be aware that any recovery will most likely be drawn out over a course of years and fairly bumpy from here on out.

What this means for Simi Valley home sellers is that equity recovery is probably not around the corner, but the low inventory levels are helping sellers remain with a slightly stronger negotiating position over the buyers.

What this means for Simi Valley home buyers is that this high level of affordability will continue to create competition for the low supply of inventory.

You’ll notice below that I’m changing the format of my standard monthly market update for Simi Valley home sales. While the averages from the multiple listing service are interesting, if you’ve seen the charting I have posted over the last year, those averages are skewed as the lower end of the market is behaving much differently than the upper end.

Simi Valley single-family detached activity up through October 31, 2009 was as follows:

  • Total  Detached Homes Sold = 60
  • Average Sale Price = $460,845
  • Average Market Time = 82 days

Of these sold properties  – 11 were short sales and 12 were foreclosures. The remaining 38 were non-distressed sales.

  • Total  Detached Homes Active For Sale = 183

Of these active properties, 25 were short sales and 11 were foreclosures. The remaining 147 were non-distressed sales and an additional 270 homes were in escrow, with 173 of those Detached homes as short sales and 33 foreclosures.

An evident monthly trend is the extremely high ratio of  detached homes in escrow compared to available inventory and actual closed sales. This further points to the difficulty sellers are having with short sales. To understand why there is such a high failure rate on short sales  please see my article: What Is a Short Sale And Can I Short Sell My House

Simi Valley Town Homes & Condominiums are reacting better and this trend is most likely tied to the low interest rates, affordability  and the first-time home buyer tax credit.

  • Total Attached Homes Sold = 25
  • Average Sale Price = $277,907
  • Average Market Time = 93 days

Of these attached properties sold, 6 homes were short sales and 4 homes were foreclosures. The remaining 15 homes were non-distressed sales.

  • Total Attached Homes Active For Sale = 50

Of these Attached Active Properties, 15 were short sales and 2 were foreclosures. The remaining 33 were non-distressed sales and an additional 133  Attached Simi Valley homes in escrow with 63 as short sales and 12 as foreclosures.

Both in the attached and detached Simi Valley housing sectors these high numbers of short sales are very important to track. Month after month after month, large numbers of homes in escrow have been dominated by short sellers. An average of 80 single-family detached homes are closing escrow each month and 18 attached homes closing.  The large volume of nonperforming loans and bad assets are not dominating the low closing rates and seeing that less than 50% of the monthly sales are distressed properties, the low success rate in purging the market of the short sales, will keep any recovery slow.

For more information please see:

Search for Homes in Simi Valley California Simi Valley Property Values

Thanks for reading Simi Valley’s Premiere Real Estate Blog!

Author – Ted Mackel Simi Valley Real Estate Agent – Keller Williams Realty

Ted Mackel is a top producer at Keller Williams Realty Simi Valley,

specializing in Simi Valley Real Estate

(805) 432-7705

Inexpensive ways to increase the value of your Simi Valley Home (Part I – Video Below)

Looking for inexpensive ways to make your Simi Valley home more attractive for buyers?

But wait a minute, aren’t homes selling with multiple offers, bidding wars and buyers being left out? Certainly in the lower price ranges homes are selling quickly and with multiple offers; however, homes in all price ranges with serious deferred maintenance and other issues are being scrutinized by buyers and sometimes left on the market.

A factor that has become glaringly obvious is that homes in the lower price ranges that do not sell in the first 30 to 60 days end up with a scarlet letter that causes buyers to be very cautious before proceeding.

So what can you do to get your Simi Valley house ready and not have it cost you a fortune?

Curb appeal – First Impressions are important in any market. What does your house say when buyers drive by?

There are two categories under curb appeal in which to view your home.

First is the landscaping

Trees are the most overlooked and poorly planned landscaping item at most homes. Many times the tree species was too large for the yard to begin with or was misplaced in the yard. There are what I call the “volunteers”, these are the trees that are grown from seeds that are deposited in your yard from bird droppings. Most of these volunteer type trees are fast growing deep rooted and destructive, as the birds sit on rain gutters, utility lines, roof edges fences and deposit the seeds where they grow and breakup sidewalks, perimeter walls and fences, impact foundations, grow up against the roof, and rub up against the house. I’ve seen were large trees over the course of years have rubbed the stucco color coat off the side of homes.

Most home owners do not understand that when they plant a tree in their yard, that will need to be pruned and maintained every few years. If not, they will overgrow and create far more costlier problems than the cost to prune and maintain the trees. See this example of how a poorly placed and improper species planting in my yard by the previous owner created a big time maintenance issue. Trees and Overhead Power Lines

Overgrown shrubs and trees negatively impact the growth of your lawn as fallen leaves and lack of sun kill off portions of the lawn. Trimming the trees and shrubs will make a huge difference in the appearance of your home.

Make sure that all dead branches are removed from the trees and that the trees are pruned and thinned. Check the shrubs and planters removing old worn-out plants and weeds. Any shrubs that are growing up and blocking Windows and pathways need to be cut back. If you enjoy potted plants, make sure that you are not overcrowding the front of your house and even the front doorway with too many potted plants.

Depending on the season, after you get your yard cleaned up, perennial flowers such as lavender, gold strum, daisies, asters, chrysanthemums or hibiscus can be picked up at places like the Simi Valley Home Depot, Lowe’s or the Do It Center in flats very inexpensively.

If the time of year is right to bring in some new plants and color, make sure your sprinkler system is working.

Second is the exterior appearance of your Simi Valley house.

  • The condition of your roof - If your roof is visible and made of composition shingles, consider a tuneup for these types of roof systems 10 or more years old. A roofer can install new Ridge caps, check and seal roof Jack flashings, chimney flashings, and drip edge flashings. If your roof has turbine venting these can be checked adjusted and or replaced if necessary. On my house I had all the equipment, pipes and the flashing painted a matching brown. The new Ridge caps and freshly painted vents made my 15 year old roof look almost new. Fascia boards and the eaves with peeling and worn-out paint provide perfect attack points for wood destroying organisms such as dry rot and termites. Unprotected wood in the Southern California sun can be damaged quickly. Along with the fascia boards and eaves, the trim around the Windows and doors may need attention too.
  • The front door - If your door is dirty and the paint is still intact, dust, shoe marks, and handprints should be cleaned off the door. If the paint or finish is peeling and/or worn off, the door should be repainted. Make sure any screen doors, door bells and most importantly the doorknob and deadbolt are all in working order and not in disrepair. Also any keys you have made for the realt0r lockboxes should work without any problems. After a number of years, continual copies of keys can create difficult to open locks. A locksmith can come adjust the locks or you if you are handy, take the locks and deadbolts  to a locksmith to have them keyed alike with a new key combo; which will generally charge approximately $10 per cylinder to have re-key.

After sprucing up the trim and front door you may want to wash the stucco and/or siding and any cobwebs in the eaves. If the stucco or siding is in poor condition repair and paint may be needed.

In the order of things to do here is how I would tackle my own Simi Valley home.

  1. The front door-paint and/or clean and adjusts the locks.
  2. Shrubs and planters-cleanup, spruce up and add color.
  3. Trees-remove volunteers that have grown up too close to the house or fences.
  4. Trees-prune overgrown trees that are blocking the view of the house.
  5. Roof tuneup-replace Ridge caps.
  6. Roof tuneup-paint flashings.
  7. Cleanup, repair and paint exterior of home,

Depending on the interior condition of the home, maybe only several of the above items need to be taken care. An overall budget and plan for the interior and exterior preparation of your home needs to be compared to any kind of improvement of sale price you can anticipate for your home.

While the above outline has many items, you may have a home that only needs a few of the minor items dealt with before your home is placed on the market.

Put yourself in the shoes of a buyer and try to look at your house as a buyer would, critical, concerned and looking for issues that might aid their negotiations. Tackle those issues now and take those items off the negotiating table.

If you’d like a free evaluation of your home’s condition I’d be happy to come over and go through your home and give you some tips and ideas on how to improve that first impression.

For more tips and ideas see:

Search for Homes in Simi Valley California Simi Valley Property Values

Thanks for reading Simi Valley’s Premiere Real Estate Blog!

Author – Ted Mackel Simi Valley Real Estate Agent – Keller Williams Realty

Ted Mackel is a top producer at Keller Williams Realty Simi Valley,

specializing in Simi Valley Real Estate

(805) 432-7705

The Lunatics Have Taken Over The Asylum

The lunatics have taken over the asylum. (CNBC video interview at end of this post)

LunaticBeside being the song title of a 1980s new wave band (Fun Boy Three), the title of this post may be more accurate than even I realize.

I follow the papers, several blogs including Calculated Risk, Square Feet Blog, industry blogs such as Inman and it is clear to me that the newspapers blow with the wind.  One day everything is great and the next day everything is terrible.  My industry sources, such as trade associations and even companies like Dataquick are too quick to create sensational headlines that are almost as obnoxious as the newspapers.  I have been telling my clients for long time now that this is going to be a long recovery and bumpy along the way.  There is opportunity in every market – even this market; it just takes determination and persistence.

For example, just two days ago, Dataquick’s headline from their own website is “Southern California Home Sales Increase“. While the over all article does a pretty good job explaining what’s been happening, I think it’s still tries to paint a rosy picture prematurely. While certain sections of Southern California are reacting better than others, the Simi Valley housing market is still below pace for any type of stable or normal market.

Looking at some of today’s headlines we see “Seriously Delinquent Mortgages Versus Unemployment Rate” and “Strong Dollar, Weak Data Pummels Stocks” and “Three-Month Treasury Bill Yields Turned Negative“. Yet the desire to cheer-lead back or will back the real estate market will appear in a conflicting article in the next few days.

What is extremely important for Simi Valley home buyers and home sellers is to understand at this time is,  any claim of a recovery or stabilization, is just more premature thought or whistling in the dark. There’s still plenty of bad venom in the mortgage markets and housing markets that need to work through the system before we can see substantial relief.

Low inventories have favored sellers and low interest rates have enticed buyers, a long-term strategy in residential real estate is probably a safer play.  The entry-level housing combined with the historically low interest rates has created affordability for a large segment of the market. The upper level housing has not mirrored the entry level housing.

We know there are still record numbers of bad loans, mortgages not being paid on time, adjustable mortgages getting ready to reset, modification programs, short sales, and foreclosures being held off the market; that the fragile environment created by government intervention ,the banking industry’s manipulation of inventories and interest rates can only be sustained for a limited amount of time.

The economy grew for a long time based on unsustainable consumer spending tied not to discretionary income, but rather to home-equity spending. Now that home equity spending has been cut off and credit lines are being closed and reduced, the consumer spending Wall Street is waiting for will not return. This all trickles down through the economy affecting jobs and housing.

While the headlines will continue to seesaw consider the information in this interview on CNBC with Meredith Whitney.

CAUTION, CAUTION, CAUTION is all I have to say.  Do your research,  a smart buy or move up purchase can be found in this market as long as you keep your ear to the ground.

Search for Homes in Simi Valley California Simi Valley Property Values

Thanks for reading Simi Valley’s Premiere Real Estate Blog!

Author – Ted Mackel Simi Valley Real Estate Agent – Keller Williams Realty

Ted Mackel is a top producer at Keller Williams Realty Simi Valley,

specializing in Simi Valley Real Estate

(805) 432-7705

Simi Valley Home Buyers – Tax Credit Waiting for Obama

That’s right Simi Valley home buyers, the tax credit is waiting for Obama’s signature. The tax credit legislation passed the House today in a 403 to 12 vote. The Senate vote was 98 to zero.  This time around there a few additions, these are pointed out in my video blog below. One thing I did not cover was the income limitations which have been raised to $125,000 for single buyers and $225,000 for couples, from the prior limits of $75,000 and $150,000, respectively. To curb any abuse of those claiming the credit, the claimants must attach proof of purchase to their tax return.


Search for Homes in Simi Valley California Simi Valley Property Values

Thanks for reading Simi Valley’s Premiere Real Estate Blog!
Author – Ted Mackel Simi Valley Real Estate Agent – Keller Williams Realty
Ted Mackel is a top producer at Keller Williams Realty Simi Valley,
specializing in Simi Valley Real Estate
(805) 432-7705

1st Annual Simi Valley SnowFest 11-8-09

Simi Valley SnowFest

Don’t miss the 1st Annual Simi Valley SnowFest on Sunday November 8th.  This new event runs from 10:00 am to 4:00 pm as a kick off for the holiday season. This event is organized and run by the Rancho Simi Recreation and Park District, at the Rancho Santa Susanna Community Park in Simi Valley located near Stearns and Los Angeles Ave across from the Metrolink station.

The park district will be bringing in equipment to manufacture several tons of snow for sledding and winter play. The Simi Valley SnowFest is also an arts and crafts fair so there be plenty of activities for the whole family to enjoy. This is a free event so bring the kids down for a great Time on Sunday.