Ninety days have passed since I took a snapshot of the Pendings on our MLS. Readers may recall I followed up with a check of the status of these “pendings” at 30 days and again at 60 days.
So how have the pendings fared after ninety days?
| "Pending" Status | # | % | closed 30 days later | closed 60 days later | closed 90 days later | back on market (active) | still pending | with-drawn or expired |
| Active/Pending-Call | 97 | 12.5 | 52% | 71% |
73% |
8% | 10% | 8% |
| Active/Pending-Loan | 307 | 39.6 | 58% | 82% |
88% |
3% | 5% | 4% |
| Active/Pending-House | 17 | 2.2 | 29% | 53% |
64% |
12% | 6% | 18% |
| Active/Pending-Short Sale | 196 | 25.3 | 13% | 26% |
36% |
19% | 26% | 19% |
| Pending - No Show | 158 | 20.4 | 42% | 52% |
56% |
3% | 32% | 9% |
| total | 775 | 100 |
As has been the case with the 30- and 60-day observations, those pending listings with a status of “Active-Pending-Loan” continue to exhibit the highest probability of closing – with 88 % having closed within ninety days. On the other end of the spectrum, those pending listings that had a status of “Active-Pending-Short Sale” had the least probability of closing – with only a little over a third (36%) having had closed, even after three months. It should also be noted that after 90 days, 38% of those pending short sales had dropped out of escrow; either by being placed back on the market as Active (19%) or taken off the market completely (19%) – probably destined for foreclosure.
| "Special Condition of Sale" | # | % |
closed 60 days later |
closed 90 days later |
under contract (pending) 90 days later |
| Bank Owned | 409 | 9.5 | 39% |
58% |
14% |
| Relocation | 20 | 0.5 | 25% |
30% |
5% |
| Short Sale | 501 | 11.7 | 10% |
15% |
22% |
| Subject to Court Approval | 24 | 0.6 | 33% |
38% |
4% |
| Other | 272 | 6.3 | 23% |
29% |
13% |
| None | 2,857 | 66.6 | 12% |
16% |
6% |
| Not yet specified | 207 | 4.8 | 3% |
5% |
4% |
| total | 4,290 | 100.0 |
Bank-owned properties and short sales continue to be the most popular types of properties for buyers – with 14% and 22%, respectively, currently under contract (pending). (see table above). Also of note, is that 58% of the bank owned properties on the market three months ago have now been sold. Bank-owned properties continue to dominate sales in this market.
This post will be the last installment of tracking these listings. Data courtesy of the Northern Nevada Regional MLS (NNRMLS) – July 2008.
10 comments
Hello Guy, Diane, and JoAnn:
Longtime lurker here. Any chance you will be doing an update on your April 2007 post about successes and failures with making so-called “lowball” offers?
B/rgds,
Gen
GenXer,
Thank you for your question; and thank you for reading our blog. I’ve forwarded your request for an update to Diane because she was the person who wrote the original post you reference.
- Guy
And since we’re talking about Diane’s piece in the RGJ, is it possible it remains somewhere on the internet [it has been removed from the RGJ site] Diane can point us to so it can be referred to in future months? If not, does Diane still have a copy she can either post somewhere on her web site or e-mail to me?
Some very interesting things have been happening in Incline Village the last several months. YTD there have been 28 SFR resales in the >$1M price segment of the market. Of this number 17 [60%+] have been at sales prices >$110K LESS than the last price reduction; 12 [43%] have been at sales prices >$199K LESS than the last price reduction; the average sales price reduction has been over $400K; and the median sales price reduction has been $212,500!
Local agents I’ve spoken to are no longer suggesting offers of $200K less than listing price but rather, $400K-$500K less [or you listening Michelle Plevel (author of buyers, stop submitting low ball offers)]! I told one agent I’d like a copy of Diane’s article which I thought would be helpful in submitting an offer >$200 less than listing price. But she told me I didn’t need it.
Quite a remarkable turn of events in about 8 months. Now if Montreux, St. James Village and Arrowcreek would only pay attention and fall into lockstep…
P.S. -
For any of you who may be interested, the Incline Village residential real estate market is on the cusp of turning into the best time to purchase a home in at least the last 6-7 years! In fact many agents I’ve spoken to are of the opinion that come this winter, it’s going to be carnage for sellers. Of course you regular readers will remember my January 11, 2009 market bottom [pricewise] prediction [I understand it was directed to the Reno/Sparks market but heck, Incline Village is still in Washoe County]. I may just celebrate by actually submitting an offer that afternoon!
Ok, call me stupid or whatever, but the odds on a short sale just don’t seem to be worth the effort, either on the buyer’s or agent’s end.
hi all, just saw a house on masters drive listed today for 1.5 taxes are 15000.00 as the price of the house comes down, will real estate taxes be adjusted down also? are real estate taxes assessed during the boom a barrier on resale of expensive houses? thanks for the info
I saw that house too–Looks like they are smart in pricing that house competitively before it gets stale on the market. There is an Arrowcreek homeowners meeting tonight which will hopefully shed some light on the Arrowcreek golf course financial situation. I would be interested in the answer to how the taxes are assessed also.
Cash Buyer–Houses re-assessed for example in 2005 will carry the burden of their valuation timeframe. This is one disadvantage of not being re-assessed upon sale as is customary in many other states. In NV we are re-assesed every 5 years typically. There have been some recent rulings changing how property owners are taxed and there is an abatement process and appeals you may go through. I would contact the assessor’s office or a real estate attorney for further clarification. As a potential purchaser you need to understand the actual, not estimated taxes before buying. They won’t go down just because you bought it for much less than it was assessed for 2 years ago.
How much is your home worth? Well, it all depends where you live.
The real estate market is still shaking. New data suggests that home prices have hit a new record low. In every new study that comes out, homeowners from Miami, to Las Vegas, Phoenix and Los Angeles, have seen their home value go lower every time.
Is that disappointing? Of course it is.
Should we sell? Is not a good time.
Should we stick to it? Yes, if you can.
Have we hit bottom? Nobody knows.
Banks are facing their worst foreclosure crisis.
Don’t take me wrong, it’s good if you are in the market to buy a home for yourself or if you are an investor, but if you are not, and you own a home, most likely the value of your property is down at least 15 %.
Why do banks care if you are loosing your home? By having to sell repossessed homes, banks have to literally slash their prices down. It gets very costly for them, after all, they have to pay property taxes, maintenance costs, and whatever utilities that need to be paid, all of this expenses for a house that it’s just sitting there, vacant, and the bank is getting nothing in return.
The latest study by the S&P/Case-Shiller Home Price Index of 20 cities, revealed the news that for 22 consecutive months home prices dropped. Only from April to May, 2009 the decline was of 0.9 %
Based on these findings, its almost like short sales should be italicized or something to stand out in a listing query. Even though they have little chance of closing, they pull down the neighboring properties. If a seller were going to make up the difference at closing from his own funds, that is fine, just write that in the remarks and you don’t have to italicize.