Las Vegas Short Sales Absorption Rate Rises YET AGAIN!

By
Services for Real Estate Pros with Savvy Home Pix B.1000860.LLC

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:

  1. 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.
  2. The list agent isn't submitting a short sale package prior to getting an offer.
  3. They are priced so low the bank will never even accept the price.
  4. Mortgage meltdown and a lost pool of buyers. 
  5. They are a difficult purchase for buyers who need a home quickly. 
  6. Too many liens to be satisfied or deferred maintenance to make the below market purchase justified.
  7. Increased inventory with stagnant closings.
They definitely aren't closing because of pricing, it is more or less terms!


Posted by

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

 

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Rainer
28,230
Abe Do
Olympia, WA

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.

Oct 03, 2007 05:56 AM #1
Rainmaker
1,142,260
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time
Holy moly!!!! Realtors in my area will not show short sales either. Too much regular inventory to waste a good buyer on a property that may or may not close. Plus they have to wait months just to get an offer accepted. Short sales just ain't happening right now.
Oct 03, 2007 08:02 AM #2
Rainmaker
417,264
Debbie Malone
Londeree's Real Estate & Property Management - Lynchburg, VA
From Lynchburg To The Lake (434) 546-0369
Great post Renee... the figures are staggering. Out of curiosity, if these are your short sales, how many regular homes are listed? 
Oct 03, 2007 02:25 PM #3
Ambassador
1,509,742
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

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! 

Oct 03, 2007 03:28 PM #4
Rainmaker
325,871
Esko Kiuru
Bethesda, MD

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.

Oct 03, 2007 04:12 PM #5
Ambassador
1,509,742
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer
Esko:  Not really.  I had a call from a lender last week who left a message saying he doesn't have a "short sale agent" and wondered if I do them.  I left him a message back saying I would ONLY do them if the house is EASY to show (most aren't) and we submit the short sale package before the listing even goes in the MLS.  I can no longer hold on to inventory that will not sell.  Nor will I be a party to prolonging foreclosure which I constitute as fraud.
Oct 04, 2007 04:16 AM #6
Rainer
315
Kurt Schmitz
K and L - Anchorage, AK

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.

Oct 04, 2007 04:21 AM #7
Rainmaker
712,521
Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

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 

Oct 04, 2007 04:44 AM #8
Rainer
315
Kurt Schmitz
K and L - Anchorage, AK

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?

Oct 04, 2007 05:04 AM #9
Rainmaker
4,797,774
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

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!

Oct 09, 2008 11:52 AM #10
Rainer
387,459
Doug Anderson
Tucker Associates Real Estate Services - Danville, CA
Bay Area Real Estate Views

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.

Apr 04, 2011 02:51 PM #11
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