Yesterday was the last day a prospective buyer had available to be in contract on a property in order to claim the First-time Homebuyers Tax Credit. There seemed to be mad rush of contract writing last week. The hope for all these buyers now is that they close prior to the next IRS deadline, which is July 1st.
I heard the question asked repeatedly (by both buyers and agents): how many of these transactions are going to close in time? No one knows for sure, but experience tells us that many of these escrows will fall out. …especially the short sales.
I thought it would be interesting to track these pendings to see just how many did close in time. So I took a snapshot of the pending on our MLS, and will take another look in a month (June 1st) and then a final look July 1st. Of course, not every Buyer who is currently in a pending escrow is looking for the First-time Homebuyers Credit, but tracking will provide current success rates for closings. I will breakdown the pendings by “special conditions” i.e. short sale, bank owned, none, etc.
Longtime readers will recall I performed a similar exercise in April of Last year (see Pendings schmendings)
So today’s snapshot of the current Pendings in Reno Sparks is as follows:
| special condition | # | % |
| bank owned | 179 | 8.1 |
| short sale | 1,564 | 70.6 |
| none | 335 | 15.1 |
| subject to court approval | 1 | 0.0 |
| relocation | 8 | 0.0 |
| other (i.e. HUD) | 127 | 5.7 |
| total | 2,219 | 99.5 |
Note: The pendings data above covers the cities of Reno, Nevada and Sparks, Nevada [NNRMLS Area #100]. Pendings defined as having a status of Pending or Active-Pending. Residential data includes Site/Stick Built, Condo/Townhouse, Manufactured/Modular and Shared Ownership properties. Data courtesy of the Northern Nevada Regional MLS – May 2010. Note: This information is deemed reliable, but not guaranteed.
Raymond
Guy,
Do I correctly read this chart to mean that as of May 1, 78.7% of all pendings are either a short sale or a bank REO?
What is an HUD pending, if I may ask?
Thanks.
Catherine
some properites that had FHA loans are transferred to HUD and then sold through them.
Catherine
Also, HUD transactions take a long time to close. Like 3-4 months after someone signs a contract. Don’t know why that is.
Guy Johnson
Raymond, That is correct. And if you add the HUD homes to mix you get 84.4% of all pendings are what we used to refer to as “distressed” properties.
Raymond
Thanks, Guy. That was the gist of my question.
I know there are some readers who regard the percentage of pendings or sales that are distressed as meaningless, but I just can’t see how we can call a market with 85% of all pending offers being on a distressed property as very healthy. As has been said many times before, 85% of all current pending offers, should they go on to close, will produce no move-up buyer.
GreenNV
Tour-de-Verdi open houses tomorrow (check out RGJ for addresses). 10 of the 12 standard sales. 690 Dog Valley is California, so who knows. 720 Hill is a record setter for the most listings in the most combinations EVER on the MLS, and should be a short sale. 38 Waterbuck is a short for sure.
So 85% of what is currently in contact are impinged sales per Guy. Is the Verdi mass open house just another shill and opportunity to imbide mass quantities of boxed white wine?
FutureRenoHomebuyer
Not sure how many others the following may apply to, but I thought it was relevant to the blog:
“…for qualified service members who are ordered on a period of official extended duty, these dates are extended for one year. For these home buyers, the tax credit applies to sales with a binding sales contract in place on or before April 30, 2011 and closed by June 30, 2011….“Official extended duty” means any period of extended duty outside of the United States for at least 90 days during the period beginning after December 31, 2008 and ending before May 1, 2010.”
Happy to hear any confirmation or otherwise on the above.
FWIW…
longerwalk
Hey, watch it! Some of that boxed wine is actually pretty good stuff!