{"id":5285,"date":"2009-06-18T13:12:27","date_gmt":"2009-06-18T20:12:27","guid":{"rendered":"http:\/\/rmlsweb.wordpress.com\/?p=183"},"modified":"2009-06-18T13:12:27","modified_gmt":"2009-06-18T20:12:27","slug":"pending-sales-continue-to-increase-in-clark-county","status":"publish","type":"post","link":"https:\/\/rmlscentral.com\/v1\/2009\/06\/18\/pending-sales-continue-to-increase-in-clark-county\/","title":{"rendered":"Pending Sales Continue to Increase in Clark County"},"content":{"rendered":"
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One of the most interesting statistics I saw in the latest issues of Market Action was the increase of pending sales compared to May 2008 in Clark County<\/a>. This was the second month in a row that the number of pending sales rivaled that of the same time period a year ago. This is good news! But what caught me by surprise was that the number of closed sales is still down from the same time a year ago.<\/p>\n

So I started to wonder:<\/p>\n

1) On average how long does it take for pending listings to show up as sold? According to the National Association of Realtors\u00ae pending home sales typically \u201cbecome existing-home sales one-to-two months later<\/a>.\u201d<\/p>\n

2) What percentage of accepted offers fail<\/a> these days? Using a formula that I got from my new friend Chuck Reiling<\/a>, a real estate professional in Seattle, WA,\u00a0I took a stab at calculating the fallouts for properties in Clark County.<\/p>\n

Following Chuck\u2019s formula I looked at the pending listings monthly from May 1, 2007 to May 31, 2009 and the closed sales from June 1, 2007 to May 31, 2009. Like Chuck I staggered the pendings by one month to allow for a “typical” close time and I used a two month running average to adjust for variances.<\/p>\n

Here\u2019s a graph of the ratios:<\/p>\n

\"\"<\/a><\/p>\n

The average pending vs. closed sale ratio is 17 percent. You\u2019ll notice that the last few months have all been above that rate, with May 2009 coming in at 31.4 percent (the highest so far).<\/p>\n

According to Eric Newman, a\u00a0Mortgage Banker\u00a0with Summit Mortgage Corp, these numbers may not actually reflect sale fails, but rather sale\u00a0delays. Newman says that\u00a0these days\u00a0there are a number of factors that increase closing time, from waiting on bank approval when needed (approximate average of three weeks) to overwhelmed underwriters (current response time for FHA loans is around 21 days).\u00a0<\/p>\n

For example, I\u00a0did a quick search in RMLSweb<\/em> and discovered that out of the\u00a0552 properties that went pending in Clark County in April<\/a>, approximately\u00a0117 were marked as requiring 3rd party approval (not all of these listings are short sales<\/a>, but most of them are)\u00a0and\u00a0122 were listed as bank owned<\/a>. That\u2019s almost half of the pending listings – 43 percent.<\/p>\n

While it\u2019s likely that a percentage of these more complicated transactions<\/a> do fail, it also may be that these listings take longer to close so the typical one month lag may not apply. Newman says we would expect that most of those pending listings will probably not be recorded as closed until June because many loans are taking 45 to 60 days to close in the current market.<\/p>\n

What do you think? What are you seeing out in the field?<\/p>\n","protected":false},"excerpt":{"rendered":"

One of the most interesting statistics I saw in the latest issues of Market Action was the increase of pending sales compared to May 2008 in Clark County. This was the second month in a row that the number of pending sales rivaled that of the same time period a year ago. This is good […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"episode_type":"","audio_file":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","date_recorded":"","explicit":"","block":"","filesize_raw":"","spay_email":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false},"categories":[19],"tags":[50,69,473,161,170,181,211,237,261,300,308,338,472],"series":[],"episode_featured_image":false,"episode_player_image":"https:\/\/rmlscentral.com\/v1\/wp-content\/plugins\/seriously-simple-podcasting\/assets\/images\/no-album-art.png","download_link":false,"player_link":false,"audio_player":false,"episode_data":{"playerMode":"dark","subscribeUrls":{"apple_podcasts":{"key":"apple_podcasts","url":"","label":"Apple Podcasts","icon":"apple-podcasts.png"},"google_play":{"key":"google_play","url":"https:\/\/play.google.com\/music\/m\/Iinki5xppiud4zt7r4evlggzzcy?t=Real_Talk_with_RMLS","label":"Google Play","icon":"google-play.png"},"google_podcasts":{"key":"google_podcasts","url":"","label":"Google Podcasts","icon":"google-podcasts.png"}},"rssFeedUrl":"https:\/\/rmlscentral.com\/v1\/feed\/podcast","embedCode":"

Pending Sales Continue to Increase in Clark County<\/a><\/blockquote>\n