|# New||Price Drops||# U/C||# Sold||Median $ of Sold|
Here we are midway through October and activity in the market still continues to surprise me. The number of properties that go under contract each week has been fairly consistent in the low 100’s over the past few months. One thing I have been noticing is the high number of homes that fall out of contract. Since late April an average of 118 properties go under contract each week at the same time an average of 90 properties close each week.
What happens to the 28 properties which go under contract but never close? There are any number of hurdles in a real estate transaction but they include; buyers remorse, inspection issues, appraisal issues and loan issues. Each transaction has its own challenges but from my chair it seems more difficult than ever to get from contract to closing. In fact, since April nearly 24% of all contracts have not made it to the closing table.
Picture a real estate transaction as a big rubber band held at one end by the seller and at the other end by the buyer. A normal transaction has a little give and take but the rubber band has enough slack on one side or the other to keep the band from snapping. Right now, it seems like buyers and sellers need to stretch their side of the band to the max in order to just get the initial contract together. If something comes up on the inspection, there is no more elasticity when the buyer wants a bit more and the band snaps. It seems like each transaction is formed on the precipice and it is a high wire act to get to closing. People definitely need a professional on their corner to help stretch it to the closing table. I’m here for you.