Volumes for September 2013 Simi Valley home sales were down 10% compared to September 2012. The median home price is up 16.49% compared to September 2012. With the increase in home price and with 30 year interest rates over 4%, this 10% reduction in sales volume is not a surprise. Prior to this increase in median home price, Simi Valley homes in the $300,000-$400,000 range dominated sales, however today that is shifted to the $400,000-$500,000 range accounting for 41% of all Simi Valley homes sold in September 2013.
Total inventory available has been almost 2 1/2 times the levels of last year, but as of the beginning of October 2013 inventory has begun to retract again. Distressed properties only accounted for 20% of the sales for September. Cash buyers accounted for 18% of September sales and conventional borrowers with the least 20% down accounted for 60% of September sales.
The increases in median prices and loan rates have caused buyers to become more cautious. Properties that are in excellent condition with reasonable upgrades are still selling quicker with multiple offers while those properties with deferred maintenance or other negative issues are taking longer to sell and many times will need to reduce their price in order to attract a buyer.
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