Simi Valley Real Estate Market Update

Accordingly to data released by RealtyTrac, Simi Valley real estate market has approximately 372 properties that are in default right now with 317 scheduled to be auctioned at area foreclosure auctions. There are approximately 26 bank foreclosure properties available for sale, and there is a high demand for distressed properties among buyers. Distressed and non-distressed sellers are extremely motivated to sell their homes and there are a number of terrific bargain homes both foreclosure and non-foreclosure. Buyers have choices in just about all price ranges and Simi Valley neighborhoods. Bank short sales have been popular as well. Lenders have been cooperating with sellers in helping them get short sales approved and closed. Foreclosure filings have increased by10%, month to month in October, but that number is still down 23% from October 2010. Approximately one in every 563 households received some sort of default notice or had their home repossessed during the month of October 2011. Florida, Pennsylvania and Indiana saw an increase on a month to month basis in foreclosure filings.

  

According to the National Association of Realtors existing home sales for September 2011 were down but are still higher than a year ago. The chief economist for the NAR, Lawrence Yun, reported that existing homes sales have pretty much been stable this year, but low. Homes are more affordable, and more borrowers are attempting to buy homes, but the contract fall out rate is double that of September 2010. Although the number of buyers is higher than last year, many of these creditworthy home buyers are being denied credit because lenders have tightened lending standards. Also loan limits in high cost areas in California such as Los Angeles and San Francisco have been lowered. This means that buyers purchasing homes in these high cost areas are now having to pay higher interest rates for a jumbo mortgage. 

Although existing home sales in the West fell 8.8 percent n September 2011, they are 10.7 percent higher than September 2010. The median price for a home in the West was $207,400, which is 4.5% below a year ago. Nationwide, distressed homes accounted for 30 percent of all sales in September 2011, with 18 % from foreclosure sales and 12% from short sales. Foreclosure sales were down from 31% in August 2011 and 35% during September 2010. Total housing inventory at the end of September 2011 declined 2.0%, representing an 8.5 month supply, compared with an 8.4 month supply in August 2011. The NAR believes that unless Congress reinstates the higher loan limits, the housing market recovery will be much slower and slow down the general economic recovery.