Q: How is the real estate market?
A: The market is very strong. The number of sales is 16% more than last year, prices are up about 4% for higher priced homes, about 7% for lower priced homes. The inventory is about the same as it was last year at this time, but with stronger sales the amount of inventory only represents about two months worth of sales, very low for real estate. This is a trend toward a sellers market.
I always seem to end with the answer to this question, this time I decided to start out answering it. Now to justify what I said above.
It is uncanny how close the inventory numbers for 2014 and 2015 are for Conejo. Look at the box above to see d significant decrease in the lower priced properties, and a similar increase in the higher priced properties. REOs and Short Sales together only represent 1% of the inventory.
I began running these numbers in 2004, and chose the ranges arbitrarily at that time. Nothing special about them, just seemed like at good range at the time.
It is important to know how your particular market is doing, the market slice for your particular client.
For example, in the Conejo Valley, it seems a large portion of homes sell in the $750,000 – $900,000 range. Today’s inventory of these homes is only 102 (out of 688). During the last three months, sales in this category has averaged 58 per month. That means the inventory for this range of homes is only 7 weeks worth of inventory. Very tight.
Simi/Moorpark inventories are in a similar position. There is a total of 16 REOs and Short Sales, representing 4% of the entire inventory of homes for sale.
Conejo and Simi/Moorpark both show extremely strong sales.
Simi/Moorpark pricing seems to be rising more quickly than Conejo, where there is a larger inventory of higher priced homes. Pricing has risen 6-9% in Simi Moorpark, versus 3-4% in Conejo. Conejo has an extremely low inventory of homes priced below $750,000, and they appear to be selling like hotcakes, with only a 5 week inventory based on current sales. Simi is not far behind.
Yes, the market remains strong. Have a prosperous week.
Chuck