What’s more exciting than tracking pending sales? Comparing pending sales with the number of properties that have settled! I mean, WOOHOO!
Consider the following. In a really hot market, the pending sales and closed sales track each other pretty closely. In a slow market, you’ll usually see very few properties going under contract, which means there aren’t many that can go to settlement (kinda makes sense, right? If there is no contract, there can’t be a settlement.)
But this market that we’re in now is very screwy (technical real estate term there).
Take a look at this chart for Prince George’s County.
As I said above, in a hot market, the number of pendings (contracts accepted) and the number of properties that settled track each other fairly closely in 2006 and 2007. The hot market pretty much fizzled in 2006, so you can see the numbers drop in 2007. But look at what’s happening now – that’s a lot of contracts being accepted! But not many are closing – which makes for a very unsettled market (pun intended). That means most of those contracts are not making it to the settlement table.
I’ll explore why in the next post.
Follow this link – January 2011 market – for all the articles as they’re posted.
© 2011 Susan Pruden