Simi Valley detached home sales for May of 2010 essentially matched the results of May 2009. While May sales saw an increase in sales volume over the first four months of 2010, the expiration of the tax credit should have accounted for a higher sales volume. The federal tax credit deadline finishes on June 30 and Simi Valley sales closings better pick up before June 30 if anyone wants to claim the federal tax credit was a stimulus on the real estate market.
The same story continues month, after month, after month with sales under $500,000 dominating the market and the majority of those are under $400,000. All purchases are still dominated by 20% down conventional financing and combined with the all cash Buyers. FHA purchases are accounting on average for about 33% of the sales.
The average sale price of a Simi Valley detached home declined significantly in the first quarter of 2010 and has rebounded over April and May, however, looking at the improvement in average Simi Valley sales price over 2009; this is still significantly below 2008 average sale price levels.
The historically low interest rates are helping stabilize prices from any future significant declines.
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