The March 2016 Simi Valley Housing Report shows that the sales volume was up significantly over March 2015 and 2014. It is early to call this a trend for 2016 as inventory levels remain tight. Continued upward pricing pressure is affecting affordability in the Simi Valley housing market which in turn is affecting move up buyers and keeping some homes off the market.
Key indicators for March:
- Homes in most price ranges were selling very close to original asking price.
- Strong competition for homes in top condition.
- Days on Market averaging less than 90 days.
Sellers should not be over confident as homes over $700,000 still saw negotiating on price with homes in the higher price ranges selling for 3.5% below the original asking price. Homes priced well in good condition with upgrades sold the quickest.
Median Price
The Median Price for homes in Simi Valley remain flat for January February and March at $532,000. with homes selling near or at asking price and not many new price highs being set for any particular neighborhood, this is not too surprising. Over the last couple years prices have moved up significantly in the lower half of the market, pricing some buyers out of the market. One month does not make a trend and three months is still too short to give any indicator as to where the market is headed.
Low Inventory
Low inventory levels remain the issue in the Simi Valley market at certain price ranges and neighborhoods. This is helping sellers gain some advantage in negotiations as buyers don’t have other available homes to use as leverage.
Interest Rates
Interest rates remain low below 4%. Buyers are trying to lock down these low rates which is adding to some of the competition on homes. However even though rates are continually threatened with a rate hike, so far that has not materialized. Lending rates should remain aggressive without any key economic news.
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