May 17, 2012

Update on Extending the First Time Home Buyers Tax Credit

Update on Extending the First Time Home Buyers Tax Credit

First Time Home Buyer Tax Credits

The First Time Home Buyers Tax Credit is set to expire on November 30th.  The reality of this deadline means that the buyers out now need to get a home in escrow by the 20th of October.  The Thanksgiving Holiday will add days to any escrow with financing, so a typical 30 day escrow may not be enough time to close before the deadline.

There has been much talk about extending the deadline for another year and more likely six months.  All that has happened to this point is that the House has passed a bill to extend the credit for Service Men and Women who are overseas for the next year.  This bill is expected to pass through the Senate.  The question remains: will the Tax Credit will be extended for all first time home buyers?

My hunch is that Congress may take a wait and see approach through the first quarter of 2010.  If sales slow, the credit most likely will come back.  Right now the big winners on this are the home sellers.  The price range of homes that have been impacted the most by this credit are the entry level homes and we have seen those home prices in Simi Valley rise by as much as $12,000.00.  The increased competition among buyers has caused may first time home buyers “settle” for homes with serious deferred maintenance, termite issues, inferior floor-plans, and inferior locations.  If come December 1st the tax credit is not renewed for everyone, I suspect many buyer will be much more patient and pickier over the low inventory offerings.

Silverthorne Tract – Simi Valley Floor Plans

Silverthorne Tract Simi Valley California

Silverthorne Tract Models

Simi Valley, California

The Silverthorne Tract at Indian Hills Tract built in the late 1990s by Centex Homes of Texas is comprised of 5 different base floor plans with room and garage options.  The front Elevations offered three different option for each Silverthorne Floor Plan.  The Silverthorne Floor Plans offered four singel story plans and one single story plan. Split between the Slate and Granite Series the homes range from approximately 2,900 square feet to 4,800 square feet. The East Simi Valley Location of the Silverthorne Tract is ideal for buisness professionals that need to be located close to Los Angeles yet desire a retreat from the city.  The older much desired Indain Hills Tract is located just South of the Silverthorne tract.  The  model section is hyperlinked to the floor plans and evelation styles. Updates for the the Silverthorne Tract will be posted on the Silverthorne Market Update page on my blog www.HomeBuysBlog.com.


Silverthorne

Granite Series

Model:
Residence Two Floor Plan
Residence Two Elevations

Silverthorne Simi Valley Plan 2 or Residence 2
5 Bedrooms 3 Bathrooms 3 Car Garage
Builder: Centex aprox. sq. ft. 2,994 Two Story

Silverthorne

Granite Series

Model:
Residence Three Floor Plan
Residence Three Elevations

Silverthorne Simi Valley Plan 3 or Residence 3
5 Bedrooms 5 Bathrooms 3 Car Garage – Tandem
or configured as
2 Car & additional Bedroom
Builder: Centex aprox. sq. ft. 3,183 Two Story

Silverthorne

Granite Series

Model:
Residence Four Floor Plan
Residence Four Elevations

Silverthorne Simi Valley Plan 4 or Residence 4
4 Bedrooms 3.5 Bathrooms 3 Car Garage – Tandem
or configured as
2 Car & additional Bedroom
Builder: Centex aprox. sq. ft. 2,650 Single Story

Silverthorne

Granite Series

Model:
Residence Five Floor Plan
Residence Five Elevations

Silverthorne Simi Valley Plan 5 or Residence 5
5 Bedrooms 3 Bathrooms 4 Car Garage – Tandem
or configured as
3 Car & additional Bedroom
Builder: Centex aprox. sq. ft.  3,863 Two Story

Silverthorne

Granite Series

Model:
Residence Six Floor Plan
Residence Six Elevations

Silverthorne Simi Valley Plan 6 or Residence Six
5 Bedrooms 4 Bathrooms 4 Car Garage – Tandem
or configured as
3 Car & additional Bedroom
Builder: Centex aprox. sq. ft. 4,500 Two Story

All information was taken from reliable sources. The author and owner of this website cannot guarantee the accuracy of the information, especially square footages.  Square footages were taken from the county tax assessor and the MLS records, but should be verified by a physical measure and such physical measurement is not the responsibility of the author or owner of this website.  These models came in several configurations substituting garage space for living space, which dramatically impacts square footage calculations for each model.  Square footages above only represent one builder configuration.  Please follow through the Floor Plan links provided to see the builder configurations.

New Site Design!!!

Hey everyone,  I just uploaded this new design for the site.  It will  take me a few nights to iron out the wrinkles, but in the end it will make the site easier to navigate and use.  Some of the improvements you will see include a Active homes for sale search tool.  Thanks again for your support!

Silverthorne Tract Simi Valley Sales Trends from 2003

Below is the sales data for the Silverthorne tract in Simi Valley from May of 2003 up through September of 2009.

The tables below contain the the Average Sales Price, High and Low Sales Prices, the List to Sale Price Ratio, all broken out by year.  The Multiple Listing Service Vendors for Simi Valley was changed twice over the past several years and much of the historical data from 2003 and prior is no longer available.  The long and short of the information is that the Silverthorne Simi Valley Real Estate market peaked in 2006 at almost a 1.2 million average sale price.  Currently the average sale price is a little better than 2003.

Currently there are two homes For Sales in the Siverthorne Tract.  Evening Star has been on for 68 days and Rising Star for almost 200 days.  Three homes are on the market in the Shadow Hawk Development with one of those homes in Escrow under $800,000.  In both Tracts, all homes are below $1,000,000 with average asking price of the mid $800,000 range.

Click on the chart to enlarge

Silverthorne Simi Valley Homes for Sale

Silverthorne Simi Valley 2003 Sales Data
AVERAGE
Sale Price
$756,242
HIGH
Sale Price
$940,000
LOW
Sale Price
$619,900
List to Sale Ratio 98.69%
Number of Homes Sold 12
Silverthorne Simi Valley 2004 Sales Data
AVERAGE
Sale Price
$926,790
HIGH
Sale Price
$1,125,000
LOW
Sale Price
$778,000
List to Sale Ratio 99.77%
Number of Homes Sold 10
Silverthorne Simi Valley 2005 Sales Data
AVERAGE
Sale Price
$1,110,786
HIGH
Sale Price
$1,475,000
LOW
Sale Price
$820,000
List to Sale Ratio 95.00%
Number of Homes Sold 13
Silverthorne Simi Valley 2006 Sales Data
AVERAGE
Sale Price
$1,197,167
HIGH
Sale Price
$1,445,000
LOW
Sale Price
$1,080,000
List to Sale Ratio 95.55%
Number of Homes Sold 6
Silverthorne Simi Valley 2007 Sales Data
AVERAGE
Sale Price
$1,057,500
HIGH
Sale Price
$1,265,000
LOW
Sale Price
$935,000
List to Sale Ratio 92.52%
Number of Homes Sold 8
Silverthorne Simi Valley 2008 Sales Data
AVERAGE
Sale Price
$799,167
HIGH
Sale Price
$840,000
LOW
Sale Price
$760,000
List to Sale Ratio 91.37%
Number of Homes Sold 6
Silverthorne Simi Valley 2009 Sales Data
AVERAGE
Sale Price
$772,800
HIGH
Sale Price
$875,000
LOW
Sale Price
$664,000
List to Sale Ratio 94.55%
Number of Homes Sold 5

Are you being eaten out of house & Home Simi Valley Termite Inspection?

Are you being eaten out of house & Home Simi Valley Termite Inspection?

Simi-Valley-Termite-repairs-dry-rotUnderstanding how a termite inspection will impact the sale of your Simi Valley Home is an important issue.  Early action can save you frustration and headache.  If you are planning to list your home, now is the time to get and inspection.  Inspections are cheap ranging form $75.00 to $100.00 depending on the company.  If you have a pest control service for regular pest control call you company and ask if they have a discount for inspection and any work they recommend.  If you do not have a termite company here are a few local companies you can call.

Simi Valley Termite Inspectors

Simi Valley Termite Company  (805) 522-4334

Gold Coast Termite & Pest Control (805) 526-1150

Zwaag Termite Control (805) 526-7040

Once you are in escrow, a termite inspection will be ordered if you did not do this prior to accepting an offer on your home.  Generally, unless otherwise agreed, the Seller will pay for a termite inspection and any corrective work that is outlined in the inspection report.  The repair cost will vary dependent upon what is found and the size of structure.  Fumigation is based off the cubic volume of the structure and other repairs can include replacing any wood damaged by wood destroying pests and wood destroying organisms (dry rot).  The inspection is limited to the accessible areas of the structure, which include the attic Simi-Valley-Termite-fumigation-dry-rotand the crawl space under a raised foundation home.  The inspector will look for moisture damage, dry rot and evidence of wood destroying pest activity.  The inspector will also look for a tag on the structure (usually located in the garage) of previous termite inspections.  A corrective list will be itemized in the report along with a cost to repair any damage found.  Older homes that have not been inspected in a long time can not only have physical repair, but also require fumigation, heat treatments or foam treatments.

Make sure to that anything stored up against the walls of your garage is moved back so the inspector can see the perimeter of the garage on the inside.

Here are some of the tell-tale areas you can check for in your home to see if termites and dry rot are about to run up a large repair bill.

  • Exterior paint on trim and siding.  If the paint is flaking and wearing away, exposed wood will be susceptible to wood destroying organisms such as dry rot.  Exposed wood needs to be scraped, sanded, primed and repainted.  Minor cracks in the wood should be filled with caulking or bondo before primer is applied.  Wood areas that are exposed to direct sunlight  for the longest hours of the day will show the biggest signs of paint failure.
  • Any wood touching dirt or grass will be a candidate for dry rot and termites.  Keep these areas well sealed with paint and try to control the moisture this wood may be exposed to.
  • Do not pile fire wood, yard trimmings, debSimi-Valley-Termite-treatment-dry-rotris or lumber up against the side of your home. This will create a perfect highway for termites and other insects to attack your home.
  • Look for piles of droppings near base-boards, window-sills, interior garage walls, exterior walls of the house.  Droppings are small, course, pepper-like pellets that can be reddish-brown in color.

Understanding Section 1 and Section Two repairs on your report.  Generally Section One covers any infestation of damage the inspector finds.  Repairs and treatment under this section are the responsibility of the seller.  Section Two are noted conditions that may lead to future infestation or damage.  These items are the responsibility of the buyer.

The above information is provided as a courtesy and is not all inclusive.  You should have your home inspected by a licensed professional termite company as you will not be able to identify all the areas of your home that may be affected by wood destroying pests and wood destroying organisms. The information contained herein is believed accurate. It is intended to provide general answers to general questions and is not intended as a substitute for individual legal advice. Advice in specific situations may differ depending upon a wide variety of factors. Therefore, readers with specific legal questions should seek the advice of an attorney

Simi Valley Landfill Expansion

Simi Valley Landfill Expansion

Below is information provided by Waste Management.  I have personally known Mike Smith and Scott Tignac for many years going way back to the GI Rubbish days.  Waste Management made a great decision keeping Mike & Scott involved in the Simi Valley operations especially as Mike has been a big corporate supporter of many local causes and charities through out the years.  While there are legitimate concerns over the Landfill expansion, I know there are two sides to every story. Links are provided below for review of the proposed expansion plans.

Simi-Valley-Landfill-and-recycling-center

Community Benefits

Why the Modernization and Expansion Project is good for the community.

  • Maintains more than 275 good-paying jobs in Ventura County
  • Injects more than $48 million annually into the Ventura County economy
  • Contributes more than $3.6 million to public agency budgets within Ventura County
  • Improves recycling options and increases environmentally-friendly programs
  • Increases production of enough green energy to power 6,250 local homes
  • Establishes one of the first LEED facilities at a landfill in the county by using recycled and sustainable building materials, energy-efficient lighting, green energy programs and recycled water
  • Reduces truck traffic on the Madera Corridor by moving local trucking operations to landfill
  • Creates over 500 acres for open space and wildlife habitats
  • Provides charitable contributions including annual sponsorships, service donations and employee volunteer support

Looking Ahead

Dear Friends,

We are excited to share some news about our plans for the future.

In the coming weeks, the Ventura County Planning Department will release a draft Environmental Impact Report (EIR) for everyone to review. This document includes detailed information about our plans at the Simi Valley Landfill and Recycling Center.

We hope you get a chance to review the EIR during the 45-day public comment period. Also, in order to make sure that you have all the facts, we will work with the County to ensure that copies of the EIR are available at County offices, local libraries and our website.

Here are some ways you can get involved and show your support:

  • Send a letter of support to your Ventura County District Board of Supervisor at www.countyofventura.org
  • Take a landfill tour for an up-close look at the project
  • Review the project information online on our website (click on “Modernization/Expansion”)
  • Attend a public meeting, once the dates of the meetings are announced
  • Register your support on our website and join our online community at www.KeepingVenturaCountyClean.com

Our plans for the future will increase green energy programs and help meet the disposal and recycling needs of residents and businesses now and into the future.

For more information about our project or to take a landfill tour, visit

www.KeepingVenturaCountyClean.com/expansion.html or contact Lisa Hemenway at (805) 581-1746.

All the Best,

Mike Smith,  Director of Operations

Scott Tignac,  Landfill District Manager

Simi Valley Housing Market Update YTD August 31, 2009

Simi Valley Housing Market Update YTD August 31, 2009

Simi Valley Home Sales through August 31, 2009 continue with similar trending patterns as June, July and August are following our typical seasonal patterns of lower volumes as we head in to the fourth quarter.  Simi Valley Single Family detached homes peaked in May at 92 closings and pulled back to 80 a month for June, July and August.  This is 18 units fewer than in 2008 for June and July; 7 fewer than August 2008.  While low interest rates, historically low inventory and the $8000.00 federal tax credit for first time buyers continues to drive the lower end of the market,  the recovery is going to be protracted and drawn out.  Any substantial increase in interest rates, available inventory or pricing could put the brakes on an already struggling Simi Valley housing market.

Activity – Single Family Detached Homes
Active Listings Simi Valley Moorpark
Active
# Units 347 109
Average List Price 563,665 1,007,273
Average Days Listed 108 130
Pending Sales in Escrow
# Units 105 26
Average List Price 444,521 693,922
Average Days on Market 61 81
Total Closed Sales for 2008
# Units 635 171
Average List Price 465,188 566,132
Average Sold Price 456,256 548,764
Average Days Listed 84 84
Average Closed Sales per month 79.38 21.38
Unsold Inventory Index (in months) 4.37 5.10
Activity – Single Family Attached Homes
Active Listings Simi Valley Moorpark
Active
# Units 142 27
Average List Price 309,242 263,843
Average Days Listed 183 125
Pending Sales in Escrow
# Units 31 13
Average List Price 277,241 284,832
Average Days on Market 61 71
Total Closed Sales for 2008
# Units 122 57
Average List Price 279,051 264,168
Average Sold Price 271,051 258,018
Average Days Listed 97 87
Average Closed Sales per month 15.25 7.13
Unsold Inventory Index (in months) 9.31 3.79

A BIG nod for my efforts on the future of Real Estate Technology

(September 3rd, 2009 – Los Angeles) Ted Mackel has been named for the California Association of Realtors Expo Tech Opening Session: Text, Tweet, and Sell: A Dialogue on Tech’s Possibilities for Today’s Agents,” panelists: Drew Burke, Ted Mackel and , moderated by Joel Singer. Panel for Tech Tuesday is in San Jose on October 6th. 10:00 AM – 11:30 AM. Selected as one out of over 175,000 members of the California Association of Realtors and of the 600+ Realtors in Simi Valley, Mackel is excited to participate in the panel and Expo.

Mackel commented “Our industry’s tools are changing at light speed. The consumers are using options on the Internet for their next home purchase or sale that my industry is slow to acknowledge. The panel gives our industry a chance to exchange and share ideas from across the state so we can increase our knowledge and serve our clients better. I have been an early adopter in this area and look forward to the opportunity to give back to my industry.”

Simi Valley Housing Market Update YTD July 31, 2009

Big Sky Simi Valley CaliforniaSimi Valley Housing Market Update YTD July 31, 2009

The Simi Valley housing market has not been boring lately.  Extremely low inventories, Super Low interest rates and the $8,000.00 Federal Tax Credit which expires December 1st have buyers whipped up into a frenzy competing for very few homes for sale.  This situation has stabilized the lower end of the market.  The middle section of the market has seen some side affects as listings in the middle price range, that are well maintained and in good locations, are snapped up fast.  however the middle and upper sections of Simi Valley home pricing still has a fair amount of negotiations going on, where the lower end of the market is in the middle of a bidding war.

We seen this all before in 2004-2005 and those buyers loosing their heads just for a chance at a $8,000.00 tax credit are going to wake up with a similar hang over as the home buyers did from the 2004-2005 market.  When the dust settles and inventory is more balanced,  there will be many buyers of this tight market that are going to realize they bought homes with serious deferred maintenance. This oversight is probably going to be a larger cost and job to tackle than they first realized erasing the benefit of the tax credit.

The fact is that as prices move up and buyers get squeezed out again, the next group of buyers will revolt.  We should see a pretty volatile up and down market for the next few years out, as the banks continue to sell off their bad assets and under performing loans.
Below is the activity for July. We can see a similar trend in that fewer homes sold in July than June and fewer homes sold in June than in May.    We have a tremendous amount of homes in escrow, but more than two thirds are  Short Sales and while more short sales are starting to close escrow there is still a very large balance that never close.

Currently there are 256 single family detached homes in Simi Valley that are in escrow.  165 of those homes are Short Sales, only 32 are foreclosures.  With a constant closing rate under 100 detached Simi Valley homes each month and similar escrow counts over the last few months, the fragility of the market is oh so obvious.  We have another wave of Adjustable Rate Mortgage Loans coming due in 2010 and 2011 that I discussed last fall in this post  Adjustable Mortgage Reset Schedule

If you are a buyer and are worried you are going to miss the $8,000 tax credit, all I can say is don’t make an impulse buy now because the $8,000 you get as a tax credit may be far out weighed by a house that needs a ton of work.  Knowing that with 256 homes in escrow and only approximately 80 will close in August,  that means that 176 will not close and those 176 buyers will be pressed another month closer to the December 1st Tax credit deadline. I can see bad buying decisions multiply as we near the deadline.

How does this affect Sellers? Less competition means that you can sell your home quicker and negotiate less if you are below the $500,000 price range.  If your home is not a creme puff; then now is the time to consider selling your home as the lack of competing listings will take some pressure off your home being in showcase condition.  I need to emphasize “some” pressure.  If your your home is a kin to one of Cinderella’s step sisters that needs to be dressed up for the ball then consider consulting with a Home Stager; the cost is far lower than remodeling and can really make the difference on that first impression.

Activity – Single Family Detached Homes
Active Listings Simi Valley Moorpark
Active
# Units 337 121
Average List Price 577,637 1,041,213
Average Days Listed 113 117
Pending Sales in Escrow
# Units 115 21
Average List Price 436,222 616005
Average Days on Market 59 62
Total Closed Sales for 2008
# Units 545 149
Average List Price 461,053 565,860
Average Sold Price 451,093 547,921
Average Days Listed 86 87
Average Closed Sales per month 77.86 21.29
Unsold Inventory Index (in months) 6.99 6.99
Activity – Single Family Attached Homes
Active Listings Simi Valley Moorpark
Active
# Units 138 24
Average List Price 306,554 285,842
Average Days Listed 171 134
Pending Sales in Escrow
# Units 39 16
Average List Price 270,575 269,757
Average Days on Market 81 69
Total Closed Sales for 2008
# Units 102 52
Average List Price 278,409 267,382
Average Sold Price 270,733 260,616
Average Days Listed 94 93
Average Closed Sales per month 14.57 7.43
Unsold Inventory Index (in months) 9.35 3.23

False Recovery? How Fragile is the Simi Valley Real Estate Market

False Recovery? How Fragile is the Simi Valley Real Estate Market

Historical Interest Rates vs Inflation

This is a chart I whipped up last year trying to illustrate what a mortgage interest rate does to the real estate market when it goes over 6%.  I might have posted it before, but it really needs another look at with our current market conditions. Why this chart becomes even more important now is that the current market conditions are a false positive on recovery for the following unsustainable reasons:

  1. Low interest rates (under 6%). Rates can’t stay here below 6% forever
  2. Historically Low Inventory. Not enought supply to meet demand.  As inventory levels increase buyers have more choices.
  3. Federal Tax Credits. $8,000 tax credt for 1st time buyers expires December 1st
  4. Unemployment.  Double didgit unemployement still has a long way to go before recovering
  5. Average monthly payments can no longer be disguised lower with exotic financing to help drive up sales prices
  6. Renter Revolt – As soon as the prices move up enough to price renters out of the entry level markets sales will slow again.

If you are in the market to buy a home in Simi Valley, the frustration factor is getting to everyone, you are not alone.  Only a good increase in inventory can help cool this market down.  I pray for inventory for my buyers.

If you are a seller and cannot wait a few years before selling, this is the time to make a move as the low inventory creates less competition and the likelihood that you can move you home quickly if priced aggressively and made ready to show with a home stager or staged yourself.

If you would like to talk real estate in an open relaxed environment; follow me on Twitter @RealtorTed and watch for my updates as I usually go to Panera Bakery in Simi Valley one night a week and hang out for a few hours having coffee with local people talking about Real Estate, things around the community, computers etc.  I hope to see you there!