The May 2015 Simi Valley Housing Report is showing stability in the market. May 2012, 2013, 2014, the number of units sold is relatively the same. Median home prices for Simi Valley in 2015 are 3.85% up from January to May.
The market breaks down along affordability lines. Where homes are the most affordable, Sale prices are only 1%-2% lower that the original asking price. The exception is that single family homes under $400,000.00 are selling on average 6.5% below the original asking price. This is typically due to any property in this price range having deferred maintenance or other issues such as foreclosure or short sale.
While distressed properties are not as common as just two years ago there are still some out there. Seller’s with threat of foreclosure or with a property that is still underwater should consider Short Sale Options while still available. However, it would be wise to choose an agent that has a track record with short sales that uses a professional negotiator (such as myself). This is not the time to fool around with bank asset managers, they do not have the same pressures to approval Short Sales as they did just two years ago.
The luxury market is settling into regular sales finally, however home sellers in this market should be aware that luxury homes are selling anywhere from 6%-10% below the original asking price. This is due to two common factors. First sellers tend to over state the value of their property. These properties are stunning and I do not blame seller’s for the pride, but buyers will hold out until these properties are priced more inline with buyer willingness. Second, appraisal values. Many of these neighborhoods have not had many sales in the last few years and some have no sales in the last year. This makes the appraiser’s job very difficult. Appraisals are coming in lower than Seller expectation.
The summer market is approaching, interest rates are still low. Sales should remain fairly constant, but any big up swings in pricing are probably not going to happen.
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