April 2016 Simi Valley Housing Report

The April 2016 Simi Valley Housing Report does not have much change over March. One trend that is emerging and only time will tell is that the segment of the Market with the highest amount of closings is beginning to shift from the $400,000 – $500,000 to the $500,000 – $600,000 range.  This shows that affordability will start to evaporate as we move forward.  To see a parallel shift from the market bottom in 2014 read where I discuss the possibility of this second shift: Simi Valley Housing Market Report August 2014

In the lower price ranges shorter market times are averaging 2 months and homes are selling pretty close to full asking price.  While talk around the water cooler at work may indicate that everything is selling like hotcakes; home sellers have the advantage, but they are not getting everything they are asking for at the negotiating table.  There is still negotiating going on over repairs and the overall condition of the homes on the market.  Only the homes in pristine condition are able to give home sellers the ability to command leverage over buyers.  We are seeing some homes go out with appraisal contingency waved, but that in not wide spread in the market and is not an advisable negotiating point to roll over on.

The Luxury Market still has plenty of negotiating going on over price.  Most of this is due to Home Sellers trying to stretch the price by starting with higher asking prices.  Buyers in this price range are more careful and patient and will wait for homes priced too high to reduce before entering negotiations.

As we approach the summer months the market should remain strong.  As usual the interest rates will control the pace of the market.  Low rates will keep the buyers interested and hikes in rates will cool the market.