November 2016 Simi Valley Home Sales, the luxury home sector volume slows. Sales in the most active price ranges continue to move. November saw the gap between the original asking price and the final negotiated sales price tighten a little. Any single family detached home that shows up on the market under $400,000 tends to need repairs and trend at 4% below asking price. The market right now is healthy and not favoring the buyer or the seller more with the exception of those homes that are in excellent condition reward the seller over the buyer.
2012 was the market bottom for the Simi Valley housing market. Looking across the price ranges of sales, the trend of price increase is very obvious. For a while homes between $350,000 and $450,000 commanded the most sales each month, that shifted to homes between $450,000 and $550,000 and now that has shifted to homes between$550,000 and $650,000.
Each month the market will ebb and flow, sellers need to be careful in overestimating the market activity and buyers need to be on watch not to underestimate the market activity. This leads to a stronger more sustainable market. Loan approvals are tied to real verifiable income, so home pricing is going to be tied to Wages, Job availability and the 30 year interest rate.