Market Activity

The number of buyers out there is almost as good as last year. Here is a number to support that: while sales are off 35% versus 2008, contingents(properties going under contract) are only off about 10%. Why the drastic difference? You would think that the two numbers should be almost equal. This large difference shows how much more difficult it is to get a ratified contract to closing. Banks are causing fall throughs due to financing and appraisals. The appraisers seem scared to death. Also, there are a lot more contingents that are short sales. They may not be closing for several months because of the nature of short sales. Again, it is a problem with the banks. They don't want to do a short sale, even though they should prefer it to a foreclosure. So, they drag their feet hoping the owner will come up with the payments.