The June 2015 Simi Valley housing report shows that the number of houses sold has jumped 24.8% over the the amount sold in June 2014. Summertime always tends to drive higher sales as people try to move families before the new school year begins.
Does a 24.8% increase in volume point to big price gains? When looking at the median price for 2014 compared to 2015, the price increase for the year is at 4.58% This is actually an indication of a more stable market and not a hot run up market. Most studies show long term (historical) home price appreciation just below inflation rates in the 3%-4% annual range. We still have half a year to to factor in, but even with more activity, interest rates and monthly payment will keep any price increase in check.
The $400k to $600k price range is still see the highest activity. Luxury homes slowed up bit with fewer sold and the bottom end of the market with homes in the $300k-$400k range sold almost 10% the original asking price. Condition and price are factors in buyer decision making and shows that buyers are not just jumping at anything put in front of them.
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