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
Adjustable Mortgage Reset Schedule
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