I just posted up on my homebuysblog.com website, information for sellers so they can better understand the short sale process.

What is a short sale and can I sell my house short?

Additionally, as a buyer the information is very useful so you can better understand some of the issues that sellers have to work through in the short sale process.

In Simi Valley, only about 10% to 12% of all houses listed as short sales close escrow. For single-family detached homes in Simi Valley, we are averaging about 80 closings a month. If you look at huge number of escrows open each month, you would be led to believe that our closings should be double or higher.

There is discussion that the banks are reorganizing their short sale departments in order to stem the flow of future foreclosures, the closing ratio is still low and those planning to sell their home short need to understand their situation, be organized, be persistent and work with a professional that understands the intricacies of the short sale process.

Thanks for reading
Author - Ted Mackel Simi Valley Real Estate Agent - Keller Williams Realty
Ted Mackel is a top producer at Keller Williams Realty Simi Valley,
specializing in Simi Valley Real Estate
(805) 432-7705

Earlier today the House of Representatives voted 403 to 12 to approved legislation to extend and broaden the homebuyer tax credits. The Senate had already voted and 98 to zero for approval. Over the course of the last several months I have seen Simi Valley home buyers have been snapping up properties in an effort to get their share of the $8000 tax credit. With the expiration date set for November 30th there much speculation about extending and expanding the tax credits and what form they may take.

The National Association of Realtors is one of the largest political lobbying forces in the United States which represents not only my industry, real estate agents, but also represents the interests of property owners and homeowners across America. The National Association Realtors fought hard to lobby Congress to extend and expand this tax credit. There is no doubt that NAR's efforts played a big part in today's victory.

Here are some of the points of the new expansion and extension.

• First-time homebuyers credit can total up to $8000
• Existing homeowners who have owned their home for a minimum of five years can apply for credit of up to $6500 on their purchase.
• April 30, 2010 is the cutoff point for buyers to put a purchase under contract.
• Any purchase under contract prior to April 30, 2010, will have until June 30, 2010 to close escrow.
• Those claiming the credit on their next tax return will need to attach proof of purchase with their return.
• Income limitations have been raised to 125,004 single buyers. And 225,004 couples.

The credit is based off 10% of the purchase price with the maximum credit of $8000 for first-time buyers and $6500 for move up buyers. California purchasers should have no problem hitting the maximum amounts as our base-level homes far exceed the national medium home price.

All that is left is for President Obama to sign the legislation.

 It looks as if the shorter time frame coupled with the 60 day escrow. Expiring June 30 is an indicator that this program will not be continued. If the tax credit is a big factor in your next home purchase your window of opportunity is very small. Simi Valley has been experiencing historically low inventories in the entry-level market, combined with low interest rates and the decline in pricing, competition among buyers will remain brisk.

One advantage from now until Super Bowl Sunday is that many in the real estate industry go into hibernation mode. This could create opportunity for buyers who are persistent and diligent in the process.

  Ted Mackel Simi Valley Real Estate Agent - Keller Williams Realty
Ted Mackel is a top producer at Keller Williams Realty Simi Valley,
specializing in Simi Valley Real Estate
(805) 432-7705

Simi Valley SnowFest This Weekend - Free Family Activity

The Simi Valley Park District is hosting an day at the park complete with several tons of manufactured snow on Sunday November 8th starting at 10:00 going till approximately 4:00 pm.  Bring the kids as this might be a great way to cool of this fall with the hot temperatures we have been having.  It's 90 degrees today.  There will be activities and an Arts & Crafts fair. 

This will take place at the park near the corner of Stearns and Los Angeles across from the Metrolink Train Station.

Simi Valley - 1st time Home Buyers Tax Credit Uncertainties

The tax credit for 1st time home buyers is ending on November 30th.  If you do not have a home in escrow by tomorrow, unless your offer is all cash, it will be difficult to get a financed purchased closed by November 30th.  The Thanksgiving Holiday will shorten the time for lenders to fund loans considerably.

There is much discussion in the media about an extension, but that is still far off in the distance as the Senate and Congress discuss options to include regular home owners in the program with the 1st time buyers.  The proposals really do not mean much until a bill is drafted out for discussion and vote.

The media coverage points to a favorable conclusion, but it is far too early to claim victory for future Home Buyers.

Thanks for reading Simi Valley's Premiere Real Estate Blog! Author - Ted Mackel Simi Valley Real Estate Agent - Keller Williams Realty Ted Mackel is a top producer at Keller Williams Realty Simi Valley, specializing in Simi Valley Real Estate (805) 432-7705

Simi Valley Homes Sales Volume January through September 2009

This is the chart for Simi Valley Single Family Detached Homes only. The trend of the entry level market dominance is evident by the graphic.  Looking at the list price to sale ratio is another important factor as well.  At the very bottom end of pricing the list to sell rations are close to 100%.  As the pricing moves up home sales begin to average 97% and at the upper end of the market, Simi Valley homes are selling for 94% of the listed price.

Comparing September 2008 with September 2009, this really is not very alarming other than September 2008 had some very troubling developments.  Fannie Mae and Freddie Mac were taken over by the government; AIG, Indy Mac, Lehman, JP Morgan Chase and Merrill Lynch created a panic, yet more homes sold in September 2008 than September 2009.  Part of this phenomenon is that the real estate market is not in recovery yet and the other part is that we are in a normal market trend period.

I have been digging around for this chart in my file cabinet and scanned this chart in so you can see how the Simi Valley Housing market moves. The chart below was put together by Lawyer's Title in 2007 and it really shows how sales slow in the fall and winter.  

Breaking out the Single Family Detached Sales for Simi Valley shows that there was 22.6% fewer homes sold in September than in August of this year.  We still have a way to go to get back to levels over 100 units per month.  

What this means in the long run is that it is still a buyers market.  The low inventory is helping sellers with less competition, but as we are seeing with a new REO Listing up on Fitzgerald this week, the price is still low even with 20 or more offers.

Simi Valley Market Update YTD through August 2009

More of the same.  Sluggish Simi Valley Market results still lag behind last year.  The only thing keeping this market alive is the Low Inventory, Low Interest Rates and the $8,000 tax credit which is about to expire.  Unemployment for California is expected to peak in December at over 12%.  No matter how hard the government, my industry or the news wants to cheerlead us out of the slump and recession, we still have a way to go.  Once some real reliable stabilization appears, it will still be a long - almost flat recovery.  

So what do you do if you are thinking of Buying or Selling?

If you are Selling you have somewhat of an advantage.  The low inventory has created fewer competing homes in Simi Valley.  We are moving into the fall which has a very typical pattern of few sales, even lower inventory and the going concern for most Real Estate offices, is that a large percentage of agents stop working till about Superbowl Sunday.  As a seller you can take advantage of the low inventory, but a comprehensive plan of exposure for your house is critical.  Typical agent marketing at this time of year will not suffice.  Additionally, interviewing agents is very important as the real estate industry fall-winter-hibernation could land you with an agent that is in the middle of their hibernation period.  

If you are Buying, Buyer Beware!  Don't get enticed into a purchase over the $8,000 tax credit.  The competition for entry level homes is stiff.  Don't get saddled with a home that is loaded with tens of thousands of dollars in deferred maintenance.  The credit may not go away, there are people working to extend and broaden the tax credit.  Even if the tax credit expires and is not renewed,  we will see a good portion of the buyers step back and ease some of the competition which will give the patient Buyer an opportunity to make a less pressured purchase.  The homes above the $500,000 mark are providing some very nice opportunities for Buyers looking for a move up. The upper end tends to see homes in better condition and fewer distressed sales.  This could all change on the next mortgage rate reset we are about to experience next year as the loans for purchases and refinances for 2005 reset or recast.  

I keep a monthly log of the market activities at www.HomeBuysBlog.com where you can go back a search out old reports and see the trends.  Follow along as a post each month.

Don't be fooled. Is the Simi Valley Housing Market Really Stabilizing?

I have written a few posts at HomeBuysBlog.com on the situation in the Simi Valley Housing Market.  While things look hot, it is neighborhood and price range selective.  We are about to witness another example of how people don't learn by the mistakes of others as they chase one of the lowest inventories we have had in years; all for a $8,000 tax credit.  When you dig down into the sales and escrows each month several important issues come to light that are diving this market.

• Interest rates are at all time lows
• Inventory is at all time lows
• $8,000 tax credit expires December 1st

What gets lost in translation of Realtor drivel/hype over a seemingly hot market, is that Simi Valley Sales Volume peaked in May and has been lower for the last two consecutive months.  Unemployment is going to continue to be a problem for any true housing recovery.  On average each month two-thirds of the escrows are SHORT SALES, which most never close escrow, leaving frustrated stranded buyers.  For example Simi Valley is averaging 78 single family detached closings per month for 2009.  With 265 homes in escrow, there are going to be many disappointed buyers as many of these escrows are distressed sales which will never be approved in the Short Sale process.  Simi Valley has averaged under 20 Closed Short Sales per month and there is nothing to change that pace for August of September.  Do the math, a real recovery is still a way in the distance.

If you are a buyer, relax, make a smart buy and don't get dragged into an impulse purchase.  If you are a Seller or potential Seller, now may be the time to put your home on the market as the inventory is low and the competition in some of the price sectors is low  If you are upside down on your home, I have a PSC Short Sale certification and can help you evaluate if your home fits the parameters that will qualify for a short sale.  There is no cost for a consultation.

Please make sure to see:

Simi Valley Market Update YTD 7-31-09

False Recovery?

Adjustable Mortgage Reset Schedule

Simi Valley Home Sales for June 2009

The above chart is the activity for Simi Valley detached home sales in June 2009.  The condo - attached market is reacting differently and should not be included in a market activity report for detached homes.  The continuing trend of brisk sales in the low end of the market is no surprise.  This trend is very fragile relying on

1. Historically low inventory
2. Historically low interest rates
3. Government tax credits and incentives