After increased sales in December should we expect a carry over into the new year? Probably not. January closings for Simi Valley Single Family Detached (SFD) homes back off as I suspected. This retraction does not indicate another drop in prices, but is more of the same of what we have seen over the last 6-8 months.
Not to sound like a broken record, but here is how January ended up:
- The number of SFD Simi Valley homes under $300k remain elevated
- Less than half of the SFD homes under $300k are purchased using low down payment financing
- Investors/Landlords are still accumulating and looking for additional rental properties
- Sales of Simi Valley Homes above $800k are still sluggish
- Buyers continue to try and time the market while the investors are out tying up properties with low interest financing and attractive selling prices.
The list to sell ratio has moved from a 3% average to almost 7% average over course of the last couple years. This gap is wide enough to show that buyers are not bidding home prices up. That any property listed for sale that is not competitive with the surrounding homes go through a course of price reductions till it meets buyer expectations.
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