BluefoxToday blog : WHY Las Vegas Pendings Aren't Closing

WHY Las Vegas Pendings Aren't Closing

I have had a good number of astute real estate professionals recently ask me "why aren't your pendings closing?" on my market reports!

Here is just a peek at some market reports for one specific area (June, July and August Respectively):

Coronado Ranch Homes For SaleCoronado Ranch Homes For SaleCoronado Ranch Homes For Sale

What you are seeing here is that the Pendings (red) has been gaining ground and the Sales have been slowing down (green).  This doesn't make sense with rising pendings, you should see rising closings.

There several very good reasons and I am here to explain why this is going on.

When I got my license here in 2005 our 30 pending to close ratio was a good 60%.  Now (with market conditions) you have to use 60 day pending to close ratio (even with cash, HOA demands can clog up the system!)  Our current 60 day pending to close ratio is a dismal 27%!

Here are the challenges:

Short Sales:  Our system is bottlenecked with short sales.  The "short" part of a short sale doesn't mean it Las Vegas Area Short Salesis a short escrow.  It means that the seller is seeking lienholder 3rd party approval to possibly forgive part of the loan or make it a "short payoff" upon successful contract and close.  These things can take a LONG LONG time for approval.  I would say 3-6 months is the "norm" depending on the lienholder.  Sometimes the approval process is shorter, sometimes longer!  Short sales have a pretty dismal list to sale history (although I feel this is changing at this VERY moment!)  You can view my last short sale market report here and I make clickable links to the last short sale market reports.  You can go back years and see that the closes have always been dismal.  You can also view the graph to the right of this paragraph and note the green (solds).  Very small sliver that never really changes from month to month.

Inventory Reduction:  As our "sellable" inventory (mostly REO) plummeted at the beginning of the year, (due to high buyer interest, low interest rates, moratoriums, etc), more buyers entered into short sales so we started seeing this curve:

Las Vegas Home Listings

As you can see I circled when the dispairity began to take shape between pendings (red line) and closings (green line).

Financing Issues:  We are constantly subject to new underwriting guidelines and changes.  Buyers are now asked to clarify more and more issues that have to do with their financials, et al.  If you ever see anyone that can close an FHA loan in less than a week, they are probably a liar (not saying it can't be done but it is highly unlikely.)  More government backed loans are being used these days and RISK FACTORS are taken into account with underwriting due to the high amount of foreclosures. 

Title Issues:  Distressed properties may have fines attached to the title from the HOA or city or county.  These need to be cleared and can sometimes take a while.

Property Stolen at the 11th Hour:  Yep, property is getting stolen in the 11th hour which can hinder the house's financing status.  Yesterday this just happened at one of my escrows that was due for it's final appraisal reinspection and ready for docs around the end of the month.  This is the third time it has happened to me in the last year and I am not a "big time" agent.  I will have another post about this coming out later today or tomorrow.

That's just a small synopsis on what is going on!  If you are considering buying a home in our market you may want to interview your Realtor closely to make sure they have been working in this market and can effectively deal with the challenges that you will face.  There is NOTHING "NORMAL" about a transaction these days!  Here is an ongoing series I am building to give buyers an idea of what is going on with the different types of transactions and the challenges each type presents in this current market!


Thanks,  Renée Burrows 702-580-1783 Broker/Owner, REALTOR®
 

 

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Comment balloon 58 commentsRenée Donohue • September 25 2009 04:54PM

Comments

Renee,

Great break down of your market.  I don't think our short sale market is quite as bad as yours but it's definitely challenging and the list to close average days is way up right now.

Posted by Brian Brumpton, Boise Idaho Real Estate (Keller Williams Boise) over 8 years ago

Renee

The bottle necking of short sales makes lots of sense. You would hope it would start to go the other way as in a venturi effect where it goes from thin to a wide opening and steady closings.

Posted by Debbie Aldrich, Salt Lake City Realtor - Salt Lake County, Cottonwood Heights (The Watts Group Real Estate ) over 8 years ago

Renee

All real reasons. We had a bottleneck of pendings in Phoenix a while back, but things seem to be working out on more and more short sales.

Rashel

Posted by Rashel Beaver over 8 years ago

Renee.  I would look at the numbers for pending sales in some segment of my market area to see how many are potential short sales, but then I'd be inclined to look at the DOM and then. . . .

Well shucks.  I just don't want to know tonight.

 

Posted by Lenn Harley, Real Estate Broker - Virginia & Maryland (Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate) over 8 years ago

Renee, haven't heard from you in a while.  Figured you been on the run!  Great info!  I love how detailed you are!

Posted by Bob Haywood, BobHaywood.com (McGraw Realtors) over 8 years ago

Renee,

The challenges are multiple, as you explain, to get pendings to close. The way things are right now they'll probably be there for another while. Unfortunately.

Posted by Esko Kiuru over 8 years ago

Renee:

Good explanation. I see this as the system need some work. If the banks get better at processing the shorts, it will work out.

I have another guestion for you. What about the huge shadow market. I have seen reports of unbeliveable amounts of property to hit.

Richard

Posted by Richard Stabile, Bergen County New Homes Builder Realtor (Re/Max Real Estate Limited) over 8 years ago

Las Vegas is not a typical market. With all of the competition on the bank owned properties, every one has switched to the short sales. A long wait but less competition. We can't have it all! With so many of these properties in contract, nothing has closed. We have close to 20 short sale listings, only 7 are not under contract yet.On the bright side we just closed 2 short sale listings this week and also recieved written approval on another. I am hoping the bottle neck can start flowing a little better. Right now we only have a pile of Monopoly money to work with !

Posted by Jeff and Lee Ann Mix, Las Vegas Homes and Short Sale Agents (Orange Realty Group) over 8 years ago

Renee - I love your explanation! All are such valid reasons and it will probaby take some time to ease out of this trend. ~Rita

Posted by Brian Burke, Broker & Advising Expert-Denver Luxury Real Estate (Kenna Real Estate) over 8 years ago

If you ever see anyone that can close an FHA loan in less than a week, they are probably a liar (not saying it can't be done but it is highly unlikely.) No, you're right Renee they are probably a liar. LOL

I wonder why the appliances can't be put in the home temporarily.  Appliances being stolen from vacant properties is a big issue here in Arizona.  I can't wait to see the rest of the series. 

Posted by David Krushinsky (Skyline Home Loans - NMLS 202115) over 8 years ago

Renee

Makes lots of sense. Time is such a huge variable with short sales.

Posted by Tom Braatz Waukesha County Real Estate 262-377-1459, Waukesha County Realtor Real Estate agent. SOLD! (Coldwell Banker) over 8 years ago

We aren't having to deal with so many short sales as you are.  One good thing for the detroit market 

Posted by Russ Ravary ~ Metro Detroit Realtor call (248) 310-6239, Michigan homes for sale ~ yesmyrealtor@gmail.com (Real Estate One) over 8 years ago

Brian:  People are asking so I need to 'splain!  You are fortunate that your market is not like ours ;)

Debbie:  There is a disclaimer above.  It seems like there was an unusually high amount of acceptances going on this week :-D  YAY Venturi Effect, LOL!

Rashel:  That's good news:

Lenn:  Here's somethin for ya!  August Short Sale Closes Days on Market: 

  • Low:  15 (this agent needs national recognition)
  • Median:  189
  • Average:  230
  • High:  1925

So it appears my timeline is close to right.  Just pulled that out of my behind in the post from what I feel.

Esko:  Yes, Unfortunately.  I am looking for more BPOs so I have income.  It does seem like A TON were approved this week so :cross fingers:

Richard:  The stuff is coming online in a reasonable manner after trustee's sale.  We do have a few things that are inhibiting a trustee's sale like the new mediation laws, short sales and loan mods.  New tenant law does keep stuff off the market a bit.  I am also seeing private parties purchase at trustee's sales at a pretty good clip.  I am estimating around 13-14% a month are being picked off by private parties at trustee's sales where last year that number was 1-2%.  Buyers are gobbling up this inventory at a phenomenal pace.  We just need sellable inventory..........and appreciation if we ever want to see the foreclosures to stop!

Jeff:  AWESOME!  In the post I mention that I feel the whole short sale thing is turning around.  Just another Vegas person to verify ;)  Thanks for stopping by!

Rita:  It definitely will take time.  Time heals all wounds, eh?

David:  Some yahoo is going to come in here and argue that he can close an FHA loan in less than a week.  That's why I put that disclaimer in there, LOL!  Appliances cannot be put in "temporarily" because the house is still inhabitable once those appliances are removed.  Appliances are not a huge issue.  Stolen air conditioners and pool pumps are more of an issue!

Tom:  Yes!!  Too many variables is kiling our DOM!

Russ:  You are one lucky duck!! 

Posted by Renée Donohue, Las Vegas Real Estate Broker - www.urLVhome.com (Savvy Home Strategies Realty, LLC-REALTOR®-Estate-Probate) over 8 years ago

The contract part is easy it's getting the darn things closed thats almost impossible nowadays!

Posted by Heather Adkinson, Real Estate Agent - Moses Lake (Windermere K-2 Realty LLC www.propertiesinmoseslake.com) over 8 years ago

Been through the LONG short sale process... it is a serious PITA.  Something has to be done.  In the mean time, we have to make sure buyers understand how difficult it will be to get closed. 

Posted by Lane Bailey, Realtor & Car Guy (Century 21 Results Realty) over 8 years ago

Renee- I can definitely concur with the financing issues!

Posted by Nevin Williams, Raleigh Mortgage Pro (Sierra Pacific Mortgage Raleigh) over 8 years ago

Very Nicely done!  It is difficult to understand what the numbers really mean and what is actually occuring in your market.

Posted by Joan Whitebook, Consumer Focused Real Estate Services (BHG The Masiello Group) over 8 years ago

Renee - Our inventory has gone done, so our pendings have gone up, but our amount of sales closed hasn't changed much.  You listed excellent reasons why shorts are not closing and in my area I think another factor contributing to our lack of inventory is because one buyer is writing offers on multiple properties, which are then taken off the market.

Posted by Michelle Gibson, REALTOR (Hansen Real Estate Group Inc. ) over 8 years ago

Renee,

 

Wow, I am happy I am in Boulder, CO.  Great post thought and I agree the short sale process can be a slippery slope at best and Buyers need to be fully aware of the process and what they are getting into.  It will also be interresting to see how all of the new lendin requirements play into things.  The days of 15 day closings are over if financing is involved.

Posted by Greg Smith (RE/MAX Alliance) over 8 years ago

Renee, Very informative post. We are starting to see the number of pending transactions botleneck here in Albuquerque too.

 

Posted by Rich Cederberg, eXp Realty Agent Albuquerque (eXp Realty) over 8 years ago

I'm looking forward to your next post on "property stolen in the 11th hour". I'm trying to figure that one out.

Posted by Julie A. Black, CLHMS, CRS, GRI, Realtor, Broker (KAUAI DREAMS REALTY Kauai Real Property Specialist) over 8 years ago

WoW.. 60 days to close.. We are lucky in most cases we can still close in 30 days or some times less.  Now short sales... hmmmmm Another story.

Posted by Roland Woodworth, Q Realty - Power In Real Estate (Q Realty) over 8 years ago

Renee, this is a great post. Very informative. It has nothing to do with the Montreal market and I was still fascinated by it.

Thanks so much for taking the time to put it together and for sharing.

 

MK

Posted by Michelle King (Home Harmony) over 8 years ago

I know that shirt sales can be very demanding.  It sound to me like you are dealing with it well and just needed to vent to others who would understand.

Posted by Sybil Campbell, REALTOR® ABR, SFR, SRES Williamsburg, Virginia (Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia) over 8 years ago

Very intriguing and informative post Renee.  As a Las Vegas lender I can tell you that financing issues will get worse before they get better as the pendulum swings from "you've got a pulse--you've got a loan" to "it's our money and you're not getting it."  Lenders seem to be looking for reasons to deny loans.  By the way, I can close your client's loans in two days! (if they buy all cash) Yahoo! LOL!

Posted by Kendall Aschoff, NMLSR ID: 372723 - Henderson Las Vegas, NV - Mortg (SecurityNational Mortgage) over 8 years ago

Awesome detailed post.  I am looking forward to the details about properties being 'stolen'  Thanks.

Posted by Robert T. Boyer, San Diego Real Estate & Mortgage Loans, Ph.D. | VA Home Loan (FHA Loan, VA Loan, Jumbo Loan,FHA Loans,VA Loans,Jumbo Loans) over 8 years ago

I guess that some business are doing things just because they can. After all, it's ALL about the money...

Helping you live your American dream...

Posted by TeamCHI - Complete Home Inspections, Inc., Home Inspectons - Nashville, TN area - 615.661.029 (Complete Home Inspections, Inc.) over 8 years ago

We use our pending only for sales that have met all contingencies and approvals. Otherwise they are classed only as under contract. It's all about how you present the information. FYI, following one of your last blogs about charts I am now using excel and producing some awesome charts, so thanks for the tips!!

Posted by Corinne Guest, Managing Broker, The Best in Buyer Representation (Barrington Realty Company) over 8 years ago

HI Renee~

I can appreciate your insights on the Vegas market...we are having a similar effect here in Phoenix!!  What do you mean by 'stolen'??  Looking forward to your next post!!  All the best!

Posted by Stephen Arnold, CRS, GRI, SFR (HomeSmart Elite Group) over 8 years ago

Like some of the others who have commented, we use a new category in San Diego called "Contingent" for any properties that are in the short sale abyss--that is, those that have offers but are awaiting lender approval. I think it gives a clearer picture of the market. Of course, the problems are still the same (taking a long time to close). But, this new category really leads buyers to viable purchases instead of short sales with hundreds of offers on the table.

Posted by Melissa Zavala, Broker, Escondido Real Estate, San Diego County (Broadpoint Properties) over 8 years ago

Those darn pending listings!!! They can drive you nuts wondering what is going on.

It is so funny reading you comments here Renee. People who do not live in Nevada really have a different perspective and feelings on what is really going on!

Posted by Terrie Leighton, Reno Real Estate Agent ~ Selling Homes in Reno (Ferrari-Lund Real Estate ) over 8 years ago

Some people just have a knack for making numbers and stas interesting....that'd be you!

Posted by SarahGray Lamm, Realtor - 100K Hours of NC Real Estate Experience (Allen Tate Realtors Chapel Hill, NC 919-819-8199 ) over 8 years ago

What pends in Vegas, closes in Vegas!

Posted by Tom Larkin (360World.com) over 8 years ago

By the way, your background image is affecting the loading speed of your blog page alot

Posted by Tom Larkin (360World.com) over 8 years ago

Cannot wait for the day for all these shorts to just go away ;-)

Posted by Gene perez (Greater Mortgage Solutions & Valley Hills Realty ) over 8 years ago

Hey there, Renee - our market is small and local escrows ( transactions with local lenders and title companyies) go pretty smooth except for the short sale time frames, but the foreclosure transactions are taking longer - one I am doing now took 2 weeks to get the bank sigs back on the contract and addendum after the offer was accepted - the bank's chosen escrow company could not open escrow without it - so we hung in limbo for 2 weeks - we need to make sure our buyers are not locking a rate for a short term.

Did you get my email request?  :)

Posted by Virginia Hepp - Mesquite NV REALTOR, Mesquite NV Homes and Neighborhoods - Search MLS (ERA - Mesquite NV Homes For Sale) over 8 years ago

Pendings will close in New quarter as Sales statistics view pendings as sales and closings will be viewed as sales in new quarter also. Can used to show strength maybe


Look for the "*" in the stats view..


Metering losses as to not show all in any given quarter. And with the mark to market accounting rule change it helps show financial soundness.. imho

Posted by Craig Bassignani (RE eBroker) over 8 years ago

Renee-

Great info!  We too are having those problems as well.  

Posted by Tim Krueger (Morovish Properties) over 8 years ago

Great Info. We have short supply here so not having the same issues but it is easy to see how the banks can bottleneck the your progress in getting out of the short sale and foreclosure issues you have. Good Luck!

Posted by Jeffrey DiMuria 321.223.6253 Waves Realty, Florida Space Coast Homes (Waves Realty) over 8 years ago

Hi Renee curious to read more about "property stolen at 11th hour" I am not exactly sure what this means... Look forward to reading your series.....

Posted by Theresa Struckmeyer, Orange Ca Realtor over 8 years ago

Renee- I could have wrote this myself-- from the persepective of a mortgage broker.  I am also going through all of this in Arizona...

It's a frustrating market, but it will weed out the weaker members of the tribe.

Posted by SEO Expert: Michael George, Real Estate and Law Firm SEO over 8 years ago

Heather:  TRUE STORY!!!  HA!

Lane:  Educating the buyer and SELLER to possible outcomes is paramount!

Nevin:  I appreciate that with your expertise!

Joan:  I am definitely going to be posting a link to this on future market reports because I have been asked over and over :)

Michelle:  BUENO about writing multiple offers.  I think there is a good number of short escrow buyers that are polluting the system that way (and I am guilty with my clients so I am not complaining about writing multiple offers for buyers!!)  Once we see the bottle top cut off (getting shorts approved which I feel is happening and a pretty good clip right now) the offer submission process will be easier.  I do try to let my clients know the inventory situation is dire (not in their favor) but they still can't resist puttign an offer in here or there "just to see"

Greg:  Education is paramount and will separate the "weekend warrior" from the full timer!

Rich:  I am betting it is all over in some of the hardest hit areas!

Julie:  I am curious if you have the same problem w/ stolen REAL property in Hawaii as I know you list a bunch of REO.

Roland:  With distressed sales (rather REO or Short) there are too many issues to address.  Non-distressed, we could probably still close an escrow that involves a government loan as long as ALL parties stay on top of their diligence!

Michelle:  Yea, I read over on Ardell and Wendy's blog that you don't have shorts in Canada!  INTERESTING!

Sybil:  I need to vent every day.  That's why stolen property NEEDS to be addressed.  Regular homeowners need to become proactive if they want to protect THEIR property's values!

Kendall:  R O F L!  Glad you didn't come in here and state you can close loans in a week.  Can you believe that I get those emails still "found you on active rain, new to Vegas and I am eager to meet with you because I can close an FHA loan in 2 weeks".  About two months ago I had one actually exclaim that on my blog.  I debated him and told him that he CANNOT close distressed loans in two weeks because HOA demands are ISSUES and then your clients are going to need TISSUES because the expectations are ENTIRELY too high.  Heck, I can't even get cash closed in two weeks because of addendums that need signatures from invisible sellers and HOA demands and other title issues.  Here's a good chuckler for you.  I had a 45 day cash close on an REO in July due to the seller not being on title.  THE SELLER was giving us hell for not closing on time and they weren't even CURRENT OWNER OF RECORD, LMAO!  It's a fun existence, eh?  Thanks for chiming in!  FYI, I looked at your blog and think you have valuable lending insight to add to my outside blog and invited you to join in as a contributor.  Please accept the invitation :)

Robert:  Thanks, I am so beat down by this market and that post will be directed to las vegas area homeowners who don't do anything when the watch shenanigans at their neighbor's vacant homes!

Michael:  I would like you to expand on that thought because I don't understand what you are getting at ;)

Corinne:  I guess I should have stated "contract to close" rather than pendings.  The general public understands pendings over "contingent contract" or "under escrow" blah!  Congrats on your charts!  I will pop over there to take a peek!  I like pretty charts with market reports!

Stephen:  By stolen, I mean real property is disappearing:  air conditioners, spas, pool pumps, appliances and this is mostly in the 11th HOUR!!

Melissa:  I incorrectly stated pendings but I use both contingent and pending when in the category "under contract".  I should have said contract to close and that is my bad!!

Terrie:  DONCHA love Active Rain.  I swear I would feel alone without it.  Some people haven't a clue about what I am saying (and I would love to work those markets) and some have the same thing mirrored in there market.  It's such a great thing to have a pulse on lots of different local markets in this country (and CANADA!)

SarahGray:  LOL!  I need to show my clients what is going on or they would hate me after they lost their 5th house contract!

Tom:  Thanks for the insight!

Greater Mtg Solutions:  I DREAM OF THAT DAY!

Virginia:  Nice to hear what is going on with my referral partner to the north!  Yes, I got the auto-notifications set up.  Talk to you in 60 days again (and it's always a pleasure!)  Keep in touch with me on the other issue we talked about!

Craig:  Thanks for your insight.  I do think contracts show strength in extremely high buyer interest!

Tim:  Glad to here we aren't alone!

Team DiMuria:  Thanks I will need all the luck I can get ;)

Theresa:  It means that mechanical operating systems (aka real property) is getting stolen around the time we have a re-inspect or have docs at title.  I find it interesting that it happens in the 11th hour!

Arizona Home Loan and Mtg:  Oh we are seeing them weeded out daily.  I also think of weeding myself out some days, LMAO!  I have seen more than I want to see and know more than I want to know from this market.  In about 20 years the newbs will gather around us and we can tell them stories that will be the caliber of great depression stories that my grandparents told.

Posted by Renée Donohue, Las Vegas Real Estate Broker - www.urLVhome.com (Savvy Home Strategies Realty, LLC-REALTOR®-Estate-Probate) over 8 years ago

Biggest reason shorts will be in and reo's out. 91 day Flipping rule on FHA loans and the second note actually can get money under the MHA plan by a match pay(albeit small) from the gover...er...you & Me to step aside. I think the seconds have pressed to retain some negotiating power.

We are seeing 11yh hour promissory notes requested of the seller... a lot of people here in Cali know they will not see 100% appreciation to offset the already 50% loss... Stats say 25-30% are Strategic foreclosures.

I'm a Home Retention Consultant and most people know they have been had. A silent revolt is underway.. These are ALT-A loans not the sub prime people...

imho

whoops almoast forgot my tag line... Mission Statement

Do Not Follow The Logic! Follow The Money! lol

 

Posted by Craig Bassignani (RE eBroker) over 8 years ago

Craig:  Thanks for coming back.  I believe that much of this mess (in my neck and I would estimate 50-75% without seeing raw numbers) Alt-A and Strategic Defaulting ~ and I can only speak from my neck of the woods.  Some people are down right proud of their actions and it is tres chic to "let it go" which is more of an ethical issue and can borderline on fraud (if it can be proven.) 

Part of the reason why our economy is crap is because people cannot eat, play, improve, et al because they can no longer use that house as an ATM.  Money isn't floating around our economy because there IS no money.  Cash outs and corporate credit propped up my city's economy for years and years and years and now we will see a "strip" correction because of it.  Sorry about the tangent but it is pretty deep here.

The chicken came before the egg.  Strategic defaults (the chicken) stuck a fork in our economy now we will see people with genuine hardships (the egg) having to let it go.

We have lots of genuine Alt-A's here because of the types of employment (tipped workers).  The tipped income workers (who can amend to qualify) lost out on a good product when it went away.

Posted by Renée Donohue, Las Vegas Real Estate Broker - www.urLVhome.com (Savvy Home Strategies Realty, LLC-REALTOR®-Estate-Probate) over 8 years ago

Renee - if you can make it through this market with these kinds of issues, you will come out the other end a real estate god (or goddess)!  I bow down to you and wish the best of luck.

Posted by Dianne Bartlett (Brightside Realty, LLC) over 8 years ago

 

 Renee,

Your patience level must be at it's higheest. Thank you for educating us on your market. I thought the Bergen County, NJ market was bad, but it's nothing as severe and slow as your area. Try to hang in there, you will be rewarded somehow, someway. Good luck!.

Jeana Cowie, Broker Associate/Realtor, Re/MAx Real Estate Ltd, Bergen County, NJ

Posted by Jeana Cowie, Broker Associate, ABR, CRS, GRI, SRES (RE/MAX Real Estate Limited) over 8 years ago

Renee, we just lost an approval yesterday for no apparent reason - other than maybe the bank had their quota for the month and didn't want to approve any more. Bottleneck is right! You have given a superb overview of your market, Renee!

Posted by Sharon Alters, Realtor - Homes for Sale Fleming Island FL (Coldwell Banker Vanguard Realty - 904-673-2308) over 8 years ago

It sounds like being a Realtor is Las Vegas is like swimming with sharks. If you get through them without a bite you live. I admire your perseverance in the face of calamnity.

Posted by Joe Pryor, REALTOR® - Oklahoma Investment Properties (The Virtual Real Estate Team) over 8 years ago

I would also chalk it up to the short sales as the biggest reason.  And the 11th hour goings-ons.  Homes are definitely harder to get closed these days!

Posted by Emily Lowe, Nashville TN Realtor (The Lipman Group | Sotheby's International Realty) over 8 years ago

Hi Renee -- You write the most indepth content and explain it so it is understandable and your visuals and graphics rock beyond compare.  If I were the local media wondering how to get a handle on real estate in Vegas -- you would be my first call.

Posted by Chris Olsen, Broker Owner Cleveland Ohio Real Estate (Olsen Ziegler Realty) over 8 years ago

Hi Renee,

Thank you for giving us a glimpse of what is happening in Vegas!  I believe your graphics confirm what a lot of people are saying that short sales take a long time to close so patience is needed.

Great post as always.

Sharon

Posted by Sharon Senger, Licensed Transaction Coordinator (tcDocs) over 8 years ago

I agree with your statement that there is nothing normal about today's market.

Like you, we have a huge number of transactions in escrow that are short sales and are taking months to close, or not close.

Posted by Christine Donovan, Broker/Attorney 714-319-9751 DRE01267479 - Costa M (Donovan Blatt Realty) over 8 years ago

Renee,

What does stolen mean?  I have been doing this for 11 years and have never heard that one.  OK, never mind as I just read one of your responses (figuring someone else would ask).

I know the Las Vegas market sucks and trust me what I say we feel for you!  I knew the REO's had exploded due to the publicity and I of course figured that would grind to a halt when all the deals were gone and I guess that is where you're at?

What will it take for your market to start to recover?

Posted by Russell Benson (Berkshire-Hathaway HomeServices/Anderson Properties) over 8 years ago

I'm also starting to see rent to re-own. My servicers are starting to push rent options hoping down the road prices will inflate so the renter-owner(???) can refi when jobs and pay raises can out pace taxes and Cost of Living increases eg. gas, taxes, fees

What I'm starting to see is multi-family living situations where due to economic conditions they are actually making it work quite nicely without teetering on the financial edge coupled with the stress of too much month and not enough cash. imo I think this to be the next wave... stats are starting to show this trend.

Best news I've heard lately is the Gov extending buying MBS until April 2010.

Prediction: Tax credit extended and possibly increased due to higher end Pick-A-Pay Loans unravelling. They will have to continue/extend this even as it approaches that deadline and will start buying CMBS (Commercial Mortgage Backed Securites)

Side Note: I had two prominent buyers that have widely held commercial properties which had to back out of a move down home purchase because of income evaporation since they have lost tenants. The holdings were in Marin Ca which I thought to be impervious to down turns... wrong again

Watch the falling dollar and retool for foreign investors..(this gives them a chance to dollar cost average their purchases of treasuries also) which we need them to buy. remember the 90's and the Japanese purchases. Everybody is hoping we didnt soil our relations with the foreign investers selling them AAA MBS securities from people that worked at Macdonalds and stated they made 13K a month :)

 

Posted by Craig Bassignani (RE eBroker) over 8 years ago

It is good to know where other markets currently stand. Thanks for all the great information and well thought out reasoning.

Posted by Sabrina Kelley, Woodland Park Colorado Mountain Homes and Land (ERA Herman Group Real Estate) over 8 years ago

wow.. that was fast

CMBS Purchases ok'd through talf..1.5b..

http://www.easybourse.com/bourse/actualite-financiere/fed-accepts-S1-5-billion-in-talf-requests-for-comml-GB0007980591-737435

So much for extend and pretend

Posted by Craig Bassignani (RE eBroker) over 8 years ago

Renee,

I have been waiting for B of A or its investors for three weeks to approve the Final HUD 1. Clients living in a van full of furniture. Approval always are promised for the next day that never come. Frustrating to say the least.

Posted by Kenny Salame, NMLS ID 313873 (All Western Mortgage Broker # 14210) over 7 years ago

Very good explanation for buyers and sellers (and for other agents as well).  The tale of 2 market is also alive and well in our market place with a backlog of homes under contract that may never make it to the sold column.

Oak Hill VA, USA

Posted by Robert Earl, The Earl of St. Pete (Choice Homes Team) over 7 years ago

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