January 2015 Simi Valley Housing Report

January 2015 Simi Valley Housing Report

Total single family detached homes in Simi Valley that sold for the month of January 2015 were 75 units.  This is fairly typical Simi Valley Housing Report for the first month of the year.  What is atypical, is that the market consisting of homes over 1 million dollars continues to move with an additional 4 properties selling in that price range.  The trend of homes selling 5% below the original asking price continues and is affecting all price ranges.  Additionally with the discount in closing price to the original listing price, market times are increasing somewhat.  This is typical as the discount is related to price reductions while marketing the home and not so much related to negotiations between buyer and seller when the offer is made.  Nationally annual price appreciation was 5.8% in 2014.  Simi Valley came in at 8.5%.  January sales are showing an 11.8% increase form December 2014 mostly due to low volume combined with the 4 sales over $1 million.  The year will most likely settle back down between the national average an our 8.5% appreciation level from 2014.  Lending requirements and regulations along with slow wage appreciation and job availability will keep any surge in check.  Interest rates are still very low and very favorable which will help motivate sales.