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.