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.