2015 Simi Valley Housing Report

2015 Simi Valley Housing Report

With 2015 closed let’s look back and see how the market performed to see if there are any signs that might carry into 2016.

Simi Valley saw it’s second highest closed sales volume in the last 10 years, with 1,263 homes sold.  2012 saw 1,282 homes sold, but that was the bottom of the market which fueled a buying frenzy over very affordable homes bolstered by super low borrowing rates.  What is notable about 2015 is that median pricing in Simi Valley, since 2012, has seen a 22.33% increase. Homes are still selling and seeing modest gains in price.

2015 Key Points

• 37 homes over one million dollars were sold.
• Homes between $400,000 and $600,000 dominated sales with a little over 60% of the homes sold.
• Prices were still moving upward.
• Negotiation between buyers and seller were healthy with no significant advantage to either the Seller or the buyer on most home sales.
• Homes selling on average 3% below the original asking price, which was more due to over pricing by the sellers.
• Homes in model like condition properly priced, sold for asking and over in some cases.

What does this mean for 2016?

Right now 2016 will probably not live up to the high sales volume of 2015 in that there are fewer homes on the market.  The tight inventory will only result in fewer sales.  However tight inventory also will help keep pricing stable.  Big pricing gains are not likely as affordability will suffer.  Modest gains as seen in the last two years are more likely.

Just one note I want to add.  The last few years I have focused on single family home sales and I leave the condos and town homes out on purpose.  The reason is, that condos and town homes have HOAs (Home Owner Associations).  Condos and town homes tend to attract more first time buyers or entry buyers.  FHA financing is a typical vehicle for first time buyers or even low income buyers.  HOAs tend to not keep their FHA certifications current which negatively impact those who want to buy in those developments.  It artificially keeps buyers out of the market.