real estate

Simi Valley July 2011 Home Sales Surge on Volume Average Sale Price drops $57k

August 4, 2011 By Ted Mackel 1 Comment

See Simi Valley Homes For Sale under $300,000

The Simi Valley Real Estate Market is in the middle of a very interesting transition and while the traditional media and my industry tend to create reports that either cheer-lead or sell subscriptions; it would be prudent to really look at what has happened in July and a trend that started back in December of last year.

Sales of Simi Valley Single Family detached housing under $300,000 has been growing in volume. Now, more than any other time since the bottom fell out of the real estate market in 2007, we are seeing prices drop and affordability rise with continued low interest rates. In the Spring of 2009 we saw similar pricing, but investors rushed in and pushed pricing in this segment back up to the low $300,000 range.

What becomes even more interesting this time around is that of the 19 Simi Valley homes that sold under $300,000 in July 2011, 60% were purchased with conventional financing or cash with an average price of $278,000. Cash and conventional purchasers can be attributed to increased activity by investors looking for rental properties and properties in poor condition that could be restored and flipped.

What is causing Volumes to Surge?

1. Prices/affordability 2. Low interest rates.

What is not happening on surging volumes?

Prices are not being run up. Looking at Simi Valley Home Sales for July 2011 we can see that 84% of all sales were under $500,000 and that the top end over $900,000 had no sales for the month. Sluggish sales over $500,000 contributes to the lower average sale price.

Tracking the average sale price does not necessarily mean that Simi Valley Home Owners have lost $57,000 in value, what it does indicate, is when you compare the average sale price each month over the course of time you can spot trends over the whole spectrum of price ranges, any major shifts between months as we are seeing between June (Simi Valley June Market Report) and July, helps us to look close at what is selling, who is buying and what are the conditions that are driving these sales.

Real Estate Markets are local, traditional media tends to report regional and statewide Real Estate trends, which you can see don’t amount to much when we look at the activity for Simi Valley.

The local, State and Federal economic issues, $4.00 a gallon gasoline, employment opportunities have a huge influence on home buyers. Additionally, the Foreclosure market, Short Sale Market and Loan Modification Market are still in the middle of their mountain of problems.

What is becoming clear from my experience with buyers in my car and looking at the trending data; buyers are very interested when pricing and condition are right, but they are unwilling to jack up the pricing (above market value) in bidding wars.

While this all may sound horrific to home sellers, this is all part or a greater stability that is forming. Increasing volumes on lower prices is positive, what we don’t want to see is decreasing volumes and lower prices.

Filed Under: Market Updates Tagged With: Home Buyers, Home Sellers, homes for sale, Market, real estate, Simi Valley

Ramifications on Real Estate in Divorce. Is it time to sell your Simi Valley home?

July 24, 2011 By Ted Mackel Leave a Comment

Divorce happens, not every marriage is successful and as a Simi Valley real estate agent I have been called to help divorcing couples sell what usually amounts to their largest asset in the marriage, their home. This is typically one of the more stressful events in a divorce as not only is the home a large monetary asset for both the husband and wife, but it is also very personal, as it was home to a family with many memories.

Simi Valley like most of the nation is trudging economic challenges, significant drop in housing values and employment challenges which has added additional stress on families and has contributed to increased divorce rates. The stress and emotions involved in divorce can create many challenges as couples move through the process. The division of real estate assets and the protection of that significant investment for both the husband and wife requires a seasoned real estate agent who can work to protect that investment and be flexible to work through the emotions and stress of a divorce environment. The bottom line is that many times in divorce, emotions are out of control, which undermines common sense and when common sense gets undermined, the monetary cost to the divorcing couple is significant and wasteful.

It would be nice to wave a wand so both parties in the divorce could work on the division of their real estate assets in a amicable manner, but since that does not always materialize, if you are in a divorce please remember that with less emotional reactions and the more you approach the sale of the real estate assets with common sense and a business like attitude, can protect and save money.

What are some of the plans of the divorcing couples with the real estate asset(s)? Well that depends on if the divorce is amicable or turbulent.

Does one spouse want to retain the home?
Try to retain the property while the children are in school and then selling the asset later?
Not happy with the market conditions and want to try to hold on to the house and sell it later for a larger profit?
Sell the real estate assets now?

One of the challenges of one spouse trying to retain the home is reaching an agreement on value. Sometimes an attitude of retribution will possess either the husband or wife in that they think by holding on to the house they can buy out the the other party at a discount and get a leg up in the divorce. This is a bad plan as the house will be appraised and possibly a few broker price opinions ordered to determine the value of the home.

Sometimes when children are involved and/or the real estate market is declining there is motivation to try and keep the house and sell it after the children are grown. If this will be 5 or more years, who is going to pay for the deferred maintenance that will occur. The house may need costly items, such as a roof, paint, etc. If the spouse retaining the home in this transitional period does not have the money to make these repairs, the plan to sell the home later for more money may backfire as the deferred maintenance items will negatively impact the value at sale time. When the property does sell later money used to maintain the house will probably need to be reimbursed which could cause more points of disagreement.

Financial Implications and Taxes

Unfortunately, divorce will cause both the husband and wife to make decisions that will not be easy. Selling the house should not turn into a contest to see who wins the trophy. The winner could put themselves in a tough financial position trying to keep the home.

Consider that there could be tax advantages to selling the property now. This is not tax advise, but rather questions think about and hopefully a prompt to push you to consult a qualified tax professional. Currently a married couple selling their primary residence may have up to a $500,000 exemption in capital gains value while an individual has only $250,000. Here’s the rub, and why you need to see a tax professional. If one spouse retains the property, then can the other can spouse claim the house as their primary residence while they are not living there? Does the spouse who moves out now turn their interest in the property to an investment interests which could hold larger tax implications?

Unpopular as it is, sale of the house as terms of the divorce will provide a solution that will bring closure to the situation. Replacement property can be found for either spouse to relocate to, while the standard of living, i.e. house size and neighborhood may not be the same, Simi Valley provides many great neighborhoods and getting re-established in Simi Valley will provide opportunity that may not be available in other communities.

If facing divorce and the value of the property is has dropped significantly, in that it there is not going to be enough money to pay off the debt against the house, take a step back form the scorched earth policy of trying to get back at the other spouse by letting the house go to foreclosure. Today the alternative of Short Sale will help both spouses get back on their feet quicker. I cannot emphasize enough, don’t let the stress and emotions get the better of your common sense. You are making a break, make it with the smallest amount of collateral damage, selling now can be achieved if you have equity and even if you do not (with a Short Sale to avoid foreclosure).

How to choose a Realtor

This is where things can get tough. Ladies, you probably have friends that are in the business, getting your husband to agree to using one of your friends is going to be as likely as you allowing your husband to use one of his buddies. Selling your house in divorce is not about having a person to complaint to about your spouse. You need a professional that is going to work to get you home sold for the highest price possible and be able to facilitate and protect the interests of both husband an wife through the process. Document execution and disclosure needs to coordinated and monitored in a timely manner as to not affect a buyer’s ability to conduct investigations or complete their loan process. Many times the husband and wife will not agree on negotiating terms with the buyer which takes extra skill to work out the differences for a successful sale. You will need an experienced, skilled practitioner, especially in this market with Short Sales common in divorce situations.

Marketing your home is a topic in itself, but the ability for the Realtor to remain calm in the middle of divorce negotiations is not a skill possessed all.

Filed Under: Buyers, Sellers Tagged With: Broker Price Opinion, Buyer, divorce, home, real estate, Realtor, Seller, Simi Valley

How the right Lockbox can help your Simi Valley Home Sell Quicker

July 16, 2011 By Ted Mackel 2 Comments

(Updated 7/16/2011) In my last article on this subject “The importantance of a lockbox when selling your Simi Valley Home” we discussed the importance of giving flexible access. A concern for any seller when giving access to their home is security. In this article I will discuss the GE Supra iBox vs. an old style combination box and how that affects your listing agent’s ability to track who has been in your home..

To the right is a picture of a combination style lock box. While these are effective in providing an extra key, once the combination is given out there is no way to track who has opened the box or control people from giving the combination code to others. These style boxes are ideal for family members or setting up access for handymen or utility providers if the home owner so desires, but this is a very poor choice for Simi Valley Real Estate Agent showings due to the lack of control. These mechanical combination lockboxes should only be used for temporary purposes and in my profession recommendation never use this type of box for giving access to agents who want to show your home.

In my trade area (including Simi Valley and Moorpark) the SoCal MLS and the Ventura County Regional MLS have chosen to use General Electric’s Supra iBox lockbox system. This blue iBox is controlled through an infrared communication device on the front of the box. Agents can rent an electronic key pad or have apps loaded onto any PDA Smart phone. There is an additional device that pairs with Android and non Apple Smart Phones so the real estate agent’s phone can communicate via infrared. Apple iPhones have a very small device the plugs into the bottom of the phone.

The iBox has a computer chip inside that stores data on all who enter through the box. The Smart Phones and the keypads call the system every 15 mins when the software is on or the key pad is powered up and transmits which properties the agent has accessed. If the Listing Agent has registered their lockboxes and has their current email address in the GE Supra system, the Listing agent will receive an email almost immediately after any of their lockboxes are accessed. The email contains the agent name and contact information of who just opened the box. This provides security in that the listing agent knows at all times who has accessed the property with a time a date stamp and if a real estate agent has not paid their bill or is disciplined by the MLS, the system can be set to not authorize their keypad or smart phone to open any of the boxes.

The software on these computerized lockboxes allows for some very flexible programming. For example, the weekdays, Saturday and Sunday can be programmed so the boxes will open only certain times.

If you really want to crank down on who gets in your Simi Valley home, there is a CBS setting. The Call Before Showing (CBS) setting requires the buyer’s agent to call the Listing Agent for an additional unique code to open the box. Using the CBS you could prescreen the agent calling and determine if you are comfortable enough to give out the CBS. Additionally you know right then and there who is going in and at what time. Please remember that the more restrictive you are with the times buyers can view your home, the fewer showing you will get as I pointed out in the last article The importantance of a lockbox when selling your Simi Valley Home“.

There is a note section in the software so a note will pop up right after the box is opened and you can type in any important notices for the agent, for example, “please leave your card or please turn off the lights”. ”Feed the dog or take out the trash” is probably not a good way to greet a buyer’s agent. Another positive feature is that the Listing agent can put their contact information in as a virtual business card and Listing comments as an electronic flyer. When used as designed and programmed properly, the iBox lockbox system not only becomes powerful tool to increase exposure, but help provide a record of who is accessing the property and a complimentary way to help follow up on potential buyers for your Simi Valley home.

As a side note, most properties that have been foreclosed on and are now owned by the bank, will use both boxes. I work with several banks as a listing agent for their Simi Valley properties. The mechanical lockboxes are used for bank personnel only, handymen etc. Those codes are not supposed to be given to real estate agents.

The Supra iBox costs a Simi Valley Real Estate Agent approximately $130.00, I own 25 boxes. When you are interviewing agents, ask if they have a Supra iBox. If they don’t or they suggest to use a mechanical box; please take this advise, stop the interview and show them the door. Homes for Sale in Simi Valley range from $150,000 (condos) in to the millions; I think it is reasonable to assume a listing agent can afford a $130 box.

There is an argument against any use of any box and that the listing agent needs to be present for all showings. That can be an article all by itself. The short answer is that Simi Valley is a bedroom community, people have conflicting schedules, a listing agent can only be in one place at one time. Why limit the times a potential buyer can see your home? And no, a listing agent cannot do a better job selling or touring the prospective buyer; many times the listing agent becomes an annoyance to the the buyer and their agent. It really does not mater how it is done in other parts of southern California or other parts of the country, it only matters how it is done in Simi Valley because your competition (the other Simi Valley homes for sale) are using the system very effectively. Don’t be the last to sell your home over lack of access.

Originally posted April 27, 2008.

Filed Under: Buyers, Sellers Tagged With: combination, homes for sale, lockbox, mls, moorpark, real estate, Simi Valley, Supra ibox

The importance of a lockbox when selling your Simi Valley home

July 15, 2011 By Ted Mackel 3 Comments

(Updated 7/15/11) The internet has changed the way Realtors do business and has changed the way buyers shop for homes. Additionally, technology is changing our daily routines and work habits. Buyers have limited time to look at homes for sale so they spend most of their time conducting online search for Simi Valley Homes sifting through listings before calling a Realtor.

Buyers also have busy lives, so when it comes time to look at homes, they want to go out and look at homes on their time schedule, not the seller’s.

As an active Simi Valley real estate agent showing buyers homes, I generate a showing list based on my clients needs. Usually there are 8-9 homes on the list that closely match (my client’s wants) and that list is sorted starting as follows:

Vacant listings,
Listings to call, leave a message and go direct,
Call and make special arrangements (put away pets etc.)
Appointment needed with the agent, the owner or both.
Homes that are only available at certain times or days.

Nine times out of ten times my clients will sort the list the same way if I give them the stack of paper; they want to know which houses are the easiest to see. The reasoning behind this is that the homes on our list already fit their criteria and second that they can see as many homes possible as their time is valuable.

Clients also prefer to see a home without the seller present. Even though a seller can be helpful in explaining things they have done to the property, home buyers like to comment about features or non features of the house and would like to do so freely.

Usually the homes (listings) that fit the first 3 scenarios above, all have lock computerized boxes. If you have your home listed for sale and fall into the 4^th or 5^th scenario and wonder why you are not getting many showings, wonder no more. I’ve shown thousands of homes in my career and EASE OF SHOWING rules the day. If your house is priced with the competition in mind and you are not getting decent showing traffic; ask yourself which of the 5 choices you have given your prospective buyers and their Realtor.

Last here is an example of a day showing properties to buyers. Last weekend my buyers wanted to see as many homes as possible. There were 39 active Simi Valley homes for sale that met their criteria. 3 homes in particular said we could only come after 3:00 and each home was located far apart. One Simi Valley home was in Wood Ranch, one in Simi Valley’s Big Sky and one in Simi Valley’s Auburn Hills by the Metrolink station. Because we started out showings in Wood Ranch, guess which home got kicked of the list? My buyers wrote and offer on a home on the east end of town. You are the seller, consider if you want to be an obstructionist or want to be inviting?

A blog post will follow soon “Lockboxes Part II” and I will go into depth on the power of the Supra iBox vs the old style combo box.

What’s my Home Worth

**This post was originally written April 27, 2008 and has been updated.

Filed Under: Sellers Tagged With: agent, buuyers, homes for sale, listing, lockbox, real estate, Sellers, showing, Simi Valley

Simi Valley Indian Hills Indian Estates Tract Sales History 2003-July 2011

July 13, 2011 By Ted Mackel Leave a Comment

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Below are tables representing Simi Valley Indian Hills Estates Tract Home Sales History. The Indian Hills Estates Tract is located just north west of Alamo Drive and Yosemite. There were just under 100 homes built in this tractand they are considered the more luxurious of the 5 tracts. This is a quick snapshot at how the Indian Hills Estates Tract has reacted to the changing market. Sales data is from 2003 through July 13th 2011.

The Indian Hills area in Simi Valley consists of 5 tracts. The Ranch and Ridge Sections are the two largest tracts in the development with the Indian Meadows being the third largest.

Indian Hills Estates Simi Valley 2003 Sales History
Average Sale Price	$644,470
List to Sale Ratio	99.45%
Average Days on Market	50
Number of Homes Sold	5

Indian Hills Estates Simi Valley 2004 Sales History
Average Sale Price	$791.190
List to Sale Ratio	99.43%
Average Days on Market	58
Number of Homes Sold	5

Indian Hills Estates Simi Valley 2005 Sales History
Average Sale Price	$926,500
List to Sale Ratio	97.12%
Average Days on Market	9
Number of Homes Sold	4

Indian Hills Estates Simi Valley 2006 Sales History
Average Sale Price	$894,112
List to Sale Ratio	93.12%
Average Days on Market	64
Number of Homes Sold	4

Indian Hills Estates Simi Valley 2007 Sales History
Average Sale Price	$892,300
List to Sale Ratio	94.17%
Average Days on Market	90
Number of Homes Sold	1

Indian Hills Estates Simi Valley 2008 Sales History
Average Sale Price	$515,000*
List to Sale Ratio	81.88%
Average Days on Market	142
Number of Homes Sold	1

* This house was the smallest model in the tract. It was a short sale ans was a fixer that needed work.

Indian Hills Estates Simi Valley 2009 Sales History
Average Sale Price	$650,000
List to Sale Ratio	91.55%
Average Days on Market	194
Number of Homes Sold	1

Indian Hills Estates Simi Valley 2010 Sales History
Average Sale Price	$628,316**
List to Sale Ratio	100%**
Average Days on Market	10**
Number of Homes Sold	3

** One of the properties started with a list price of $849,900 and eventually sold for $665,000. It was on the market for 1 year. It sold close to the reduced price and had a sales price close to the the other two sales. The one year market time and the huge price reduction skews, how this home would have reacted to market conditions if priced properly as the other two properties.

Indian Hills Estates Simi Valley thru July 2011 Sales History
Average Sale Price	$712,500
List to Sale Ratio	90.21%
Average Days on Market	73
Number of Homes Sold	1

There are currently two homes for sale in the Indian Hills Estates tract as of July 13 ,2011. The average list price of the two homes is $626,975 with an average of 40 days on market, I have been most these homes and based on location amenities and pricing the final sales price will most likely average down close to the list price on one of the homes as it is in very good condition and the location is better. The other listing (which is the same model) is in poor condition and backs Yosemite. It may close lower than the asking price.

The one sale in the Indian Hills Estates tract for 2011 at $712,500 in not an indication that prices are rising, this property really goes back to the rule of “Location, Location, Location.” It sits perfectly opposite the 5th tee at Simi Hills Golf Course and over looks the 5th green / fairway approach. A good size lot for the tract and pool. The sales comp will help the neighborhood, but it would be premature to say it will drive average pricing for the neighborhood over $700k.

Filed Under: Simi Valley Tracts Tagged With: homes sold, indian hills estates, real estate, Simi Valley

Simi Valley June 2011 Real Estate Market Report

July 6, 2011 By Ted Mackel Leave a Comment

The Simi Valley June 2011 Real Estate Market Report is showing some improvement for June single family detached homes (SFD) sold. Average home price for Simi Valley rose approximately $30,000.00 on increased volume. While the rise in average sale price may be encouraging, it is premature to present this as any sign of recovery. The number of SFD Simi Valley homes selling under $300,000 remained higher than past trends and the bulk of the properties selling in the Simi Valley still dominate the $300,000 to $400,000 range. An interesting statistic to note is that conventional and cash buyers are out numbering the FHA/VA buyers. The increase volumes below $300,000 for Simi Valley SFD homes still shows softness in the overall real estate market. Buyers are taking advantage of lower prices and low interest rates which is driving slightly higher sales volumes.

Nationally, MacroMarkets, LLC recent (June 2011) survey of industry economists and real estate experts showed that most believe that housing prices will hit their bottom this year and may have in the 1st quarter, leading to stability of pricing through 2015.

Shiller added, “If it were to materialize, such a scenario might be better described as a forecast of price stability rather than a rebound. A 2% a year home price increase will not inspire a lot of consumer confidence.

Filed Under: Market Updates Tagged With: homes for sale, Market Report, real estate, Simi Valley

Asking for Closing Costs Could Cause Home Buyers To Over Pay For Their Purchase

July 1, 2011 By Ted Mackel 1 Comment

Home Buyers many times ask Home Sellers for concessions or assistance when they make an offer to purchase a home. The typical request from a home buyer is for closing costs, a home warranty, repairs or for the seller to include certain personal property items for sale. This article will focus on closing cost requests from home buyers.

The following information pertains to California real estate only. Real estate settlement and closing procedures vary from state to state, so if you are looking for information for real estate transactions in a state other than California, the information below may not apply to your situation.

As the Simi Valley housing market has lost value and sales have slowed, the requirements for buyers to get financing has become difficult at the same time. The Simi Valley real estate market has seen the most activity in homes selling under $450,000. The buyers in this price range typically have low down payment offers and do not have significant reserves or savings. The FHA loan program allows those buyers with limited resources to purchase homes with as little as 3 1/2% down. For Simi Valley this translates into approximately $8000-$15,000 minimum down payment needs; the FHA program helps these buyers get into homes.

Looking at Simi Valley homes selling for under $450,000, the typical closing costs associated with those home purchases can range in the $8000-$10,000 range. It has been a pretty common practice for buyers to write an offer asking the seller to concede up to 3% of the sale price to assist the buyer with these closing costs. While not all sellers have the ability to make this concession, the buyers will add this figure on top of their offer price so the seller will realize a net sales price closer to what is acceptable to the seller.

In 2010 the federal government changed the Good Faith Estimate (GFE) and tightened down regulations on this form to protect buyers from overpaying fees associated with obtaining financing. Once the buyer’s lender issues the GFE, the lender is bound by those numbers and has very few options to increase any of the figures on that statement. The 2010 GFE does allow for some minor adjustments, but overall the buyer can feel pretty good about the actual closing costs associated with their purchase and loan after receiving this document. These new regulations with the GFE have created an issue in how buyers should ask for a closing cost credits from the sellers. If these credits are asked for without consideration of the new GFE requirements, the buyer can end up paying more for the property than they intended.

For example,

The buyer asks for $10,000 credit toward closing costs in their offer to the seller.
The seller is clear that they would like to receive no less than $400,000 for their property.
The buyer’s offer is for $410,000 with the seller crediting back $10,000 toward the buyer’s closing costs.
The seller accepts the offer and escrow is opened.
The buyer now makes loan application with their lender.
A GFE statement is issued within three days of the loan application outlining all the buyers costs.
Those buyer costs total $8,000.
The seller’s obligation is only $8,000 and the $2,000 difference is now realized by the seller in a net sale price of $402,000.
The buyer just overpaid $2,000 more for the property than they originally intended to.

The example above outlines one of the problems Simi Valley home buyers may encounter when asking for closing costs to be credited by the sellers.

Some might say, ” when the buyer makes loan application, shouldn’t the lender set all the fees on the GFE statement to equal the $10,000?” The 2010 GFE was designed to outline and identify the costs to obtain financing, so buyers could go out and compare the costs between different lenders. How would it be to the lender’s advantage to inflate the costs and fees; just to try and burn up a concession/credit from the seller? Also, why would anyone want to pay more for property or pay more for costs than they need to?

If you are a buyer who is considering asking for a seller concession in closing cost assistance, understand the ramifications of such requests. If reserves/savings are one of the driving issues into asking for this type of seller concession that is one thing, but if you are asking for the seller concession while you have the money to pay for these closing costs, consider the following:

Your property will be assessed for property taxes in the amount of the sales price. Is increasing the sales price worth paying additional property taxes over the course of time you own the property?
By offering more than the original listing price to cover your closing costs, remember you will be paying interest on the higher purchase loan amount for next 30 years (if your loan is amortized on a 30 year schedule). I’ve always felt that home buyers should deeply reconsider (if possible) financing closing costs for 30 years. It’s does not make much since to pay interests on fees, since the first 20 years of the 30 year amortization schedule is weighted toward paying down the interest on the note.

Last, if you’re reading this article and you end up educating and instructing your real estate agent on these issues, ask yourself how well you’re being represented by an agent who’s not aware of these issues. If your real estate agent is not aware of issues as important as the impact of closing costs on your pocketbook during negotiations of your home purchase; then what else are they unaware of that may leave your money on the table or put you at a disadvantage in negotiations?

My sellers will gladly accept the additional funds if your closing costs are overstated in your original offer. Wouldn’t you feel better if you had an agent representing you trying as hard as they can to make sure you’re not leaving money on the table? Call or text (805) 432-7705

Filed Under: Buyers Tagged With: closing costs, Home Buyers, Home Sellers, homes, Market, real estate, Simi Valley

Simi Valley May 2011 Real Estate Market Report

June 9, 2011 By Ted Mackel 1 Comment

The Simi Valley May 2011 real estate market report for home sales is continuing on some similar trends. Total single-family detached homes sold in the month of May were slightly lower than the previous year with a 6 1/2% decrease, but higher than in April 2011. The average sales price for Simi Valley single-family detached homes declined for a second month in row from $443,038 to 433,502. The decline is influenced by the higher number of homes that close in the under $400,000 price range. If you look at each chart from the monthly reports posted in the Market Updates section of this blog; it is clear the highest buyer activity is in the below $400,000 price range. Continuing from earlier this year we have seen more homes selling below $300,000 and in May there were 16 single-family detached homes closing below this level which is the highest number since the height of the real estate market back in 2006-2007.

In recent reports Robert Shiller, one of the economists behind the S&P Case/Shiller index of home prices, has stated he would not be surprised if home values decline another 10% to 25%. While this seems alarming, Mr. Schiller is clear that some of this decline will not be seen in actual prices but rather masked by inflation.

May of 2009 saw homes close at lower pricing than today and each time the Simi Valley real estate market approaches price points similar to 2009, buyers and investors purchase activities pick up and appear to help support a flatter market condition.

With home sales under 300,000 increasing, first-time home buyer’s affordability increases as well. Some housing tracts in Simi Valley stabilized and some pulled back a little. Overall, the three-year trend of approximately 80 single-family detached homes selling each month continues and signals for gains and recovery in home pricing is still on hold. The chart below is broken into pricing categories, if you look at the price range your home falls into, you can see what the average market timing is, what the average sales price is compared to the original list price and how many homes in your range or closing each month.

Filed Under: Market Updates Tagged With: declines, Home Sales, real estate, recovery, Robert Shiller, Simi Valley

Conejo Simi Valley Moorpark Multiple Listing Service – Flawed Data? You decide

March 20, 2011 By Ted Mackel 6 Comments

Conejo Simi Valley, Moorpark Multiple Listing Service – Flawed Data

Days on market is a number used to try and gage how the market is moving. I am going to point out why this number is becoming very unreliable. Two abbreviations you may hear are Days On Market DOM and Cumulative Days On Market CDOM. Until just a few years ago CDOM was not tracked in the Ventura County Multiple Listing Service. Homes that do not sell start racking up days on market. The longer a home sits on the market , the more potential buyers want to know why that home is not selling. Some listing agents aware of the handicap of a listing with a large days on market count, have been known to cancel a listing or let it expire so the home can be re-listed. As a new listing, the DOM clock is reset to zero, however, the CDOM clock keeps ticking.

When a property is re-listed in an attempt to reset the DOM clock, a data error now enters the picture. The MLS tracks the percentage of the Sale price to the Listed price, but when a property is re-listed this percentage calculation is not based off the original listing price or the prior listing contract (if expired). It is calculated off the current list price which would include any reductions from the original list price. In fact the MLS always calculates the percentage off the current List Price which can seriously skew that percentage ratio.

Let’s look at two properties that this has happened with and how the MLS now presents inaccurate information on these sales.

1768 Mesa Ridge Ave Westlake Village CA was listed for $1,875,000.00 on 6/4/08. The listing expired one year later and was re-listed on 6/3/09 for $1,700,000.00. The price was lowered four times down to $1,300,000.00. The home finally sold for $1,435,000.00 and closed on 9/15/09. The MLS now reports a DOM=103, CDOM=454 and the Sales Price to List price percentage of 110.38%. How can that be? $110.38% ? It should be calculated off the $1,875,000.00 and the Sales Price to List price percentage correct number is really is 69.34%. Even if one could make a plausible argument that the old listing period should not be counted, the second listing period started with a list price of $1,700,000.00 and that is still far below a 110.38% result. Even though the CDOM is listed, the CDOM is left out of the average DOM calculation which is misleading to the true story of the market timing for homes in this price range and area.

Click to Enlarge – Westlake Village Sales Table

1777 Yarnton Street Westlake Village, CA was listed for $1,095,000.00 on 4/29/09. Approximately 60 days later the price was reduced to $1,074,900.00 and the property quickly picked up an offer and sold for $1,075,000.00 after a 60 day escrow. The MLS shows the Sale price to List Price percentage as 100.1% using the reduced list price vs the sale price incorrectly. When using the original list price that Sale to List percentage should be 98.17%. The CDOM and DOM is correct, but the DOM is averaged in with the incorrect DOM numbers presented on homes like1768 Mesa Ridge.

The story of Measa Ridge is that the Sellers tried for a year to get a price for their home that the buyers did not agree with; once the Sellers of Mesa Ridge finally lowered the price to a range that brought out buyers, it sold taking 454 days. The 103 days on market and the 110.38% sale to list percentage that is being used does not tell the real story.

The Story of Yarnton is very similar…..THE SELLERS HAD TO LOWER THE PRICE to get it sold. It did not Sell at 100% of List Pirce.

This is very important to understand as days on market is not revealing a true picture of the actual market condition.

Next time you ask for the numbers, keep in mind that the quick answer just based off a quick look at a standard MLS report is going to reveal number based off the last reduced price vs the final sales price. This market is very different than any other. Lower price ranges are selling faster and closer to asking price that higher end homes. Trying to ascertain market conditions has to be done regionally maybe even hyper-locally and definitely price range specific.

For additional information on this topic you can read:

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

Filed Under: Real Estate News Tagged With: Days on market, homes for sale, mls, real estate, Realtor, Westlake Village

Simi Valley Home Sales Report for November 2010

December 15, 2010 By Ted Mackel 3 Comments

Simi Valley home sales trends for November 2010 continued to match patterns we’ve seen over the last year. Volumes, pricing and most other factors remain unchanged month over month. While this stability is a good sign for the Simi Valley real estate market, most are still uneasy about future outlook of home sales.

Interest rates below 5% coupled with rates hitting their lowest point in November have not created any new stimulus for the Simi Valley real estate market. Looking at the Sales Volume chart below, you can see that over the past five years November has had a very common pattern except for 2007.

The bulk of the activity in Simi Valley home sales still remains in the under 500,000 price range while homes above this price point fluctuate, the luxury markets are still selling at a very slow pace. Distressed properties including short sales and foreclosures are still negatively impacting the market and will continue throughout 2011.

Current market conditions are still favorable for qualified Simi Valley home buyers as low interest rates and average home pricing afford good opportunity. Looking at the Average Sale Price Graph below shows that average pricing seems to be holding steady without any major swings. Much if this is related to the low interest rates and the rental payment comparison. Renters looking to buy over the last few years are looking to keep monthly mortgage payments near what they would pay for rent and have been unwilling to enter the market without out a bid up mentality just because rates are the lowest we have seen in a long time.

Purchases made in this market are a long term position. Until the employment picture both on the State, Local and national levels recover overall home pricing and the Simi Valley real estate market will react on a similar pace as we have seen over the last couple years.