The Las Vegas Short Sale Absorption Rate has risen to a pitiful 51 months of inventory, up from 43 months last month!
On 8/27 there were 2743 listings with 250 pendings and 63 closed between 7/15-8/15/2007. On 10/3 there were 3393 listings with 244 pendings and 66 closed between 8/16-9/16/2007.
Some underlying reasons why short sales are not closing:
- They are hard to show. The seller wants to show the bank they are listed to prolong foreclosure. A good portion of these are tenant occupied.
- The list agent isn't submitting a short sale package prior to getting an offer.
- They are priced so low the bank will never even accept the price.
- Mortgage meltdown and a lost pool of buyers.
- They are a difficult purchase for buyers who need a home quickly.
- Too many liens to be satisfied or deferred maintenance to make the below market purchase justified.
- Increased inventory with stagnant closings.
Wow!!! 51 months? That's incredible I'm curious how that stacks up versus other nationwide statistics. I know here in the Seattle vicinity we are at approximately 5-10 months depending on the county and we are still seeing some appreciation.
Good Luck!!! Great post at capturing the current market in a small dose for other readers. Thanks.
Ryan: WOW! Thanks for stopping by and your comments!
Bryant: I don't think Holy Moly can even describe! And, no, they aren't happening right now!
Debbie: Only around 29K homes with 2K sales a month.............OUCH!
Renee,
Excellent update on that segment of the market. The absorption rate still going up here is kind of concerning because what you read in the national media is that lenders generally claim they are very favorable nowadays to do a workout to help distressed homeowners.
Renee,
The lenders are trying to stop the bleeding with a bandaid, won't work. Much like the stock market, buyers, lenders, and builders all gambled, then the company went out of business. When the lenders finally realize the patient will die unless they amputate the "easy money" factor out of the values and take the hit, will this market begin to heal.
Renee, I wouldn't participate in the charade either. If lenders really want to do short sales they would make it easier for a buyer to complete the transaction. They generally want to close within 15 days after reaching a deal with the buyer. What buyer can arrange financing and close in two weeks?
Bill Roberts
Bill,
You would be surprised. I have had an offer on a short sale for a month. I'm pre-approved will put 20% down and would close in days if they'd bite the bullet. The hold up is not the primary lender, it's the second. How many are there like me?
Renee, an excellent article and blog. You're right on with your analyses. We're going through the same issues here in Florida. Probably the worst problem is clueless agents!
Well Renee I am glad you linked this article to one of your recent posts. A blast from the past. The process has gotten a touch better but not much.