For the second month in a row we are seeing falling inventories. If you are out looking for a house right now, you know how competitive the market has become. In May there were 15,046 houses and condominiums/townhouses listed in the MLS for sale. This month there are currently 13,086 listed for sale. Bank owned inventories on the market have fallen to 2,969. Short sales remain fairly stable at 5,492. Numbers of properties under contract remain high at 11,620. Of these 5,696 are bank owned and 4,660 are short sales. A closer look at the short sale numbers supports the weakness of successful closings in this category. When a short sale has an accepted offer on it, it goes into contingent status, meaning the contract is awaiting approval by the lender. 4,312 of the 4,660 short sales under contract are in this contingent status. When the lender approves the short sale and the buyer has removed any additional contingencies, the status changes to pending. There are only 348 short sales in pending status.
Closed sales remain high – 3.918 in the month of May. 2.928 were bank owned, 282 were short sales and 708 were regular resales.
At current absorbtion rates, there is a 6.9 month inventory of homes on the market. A comment made on last month’s market update has a great deal of validity. The foreclosure moratorium is over and lenders have begun sending notices of default again. From the date of filing of the notice of default to the date when the property may be sold is 120 days. We may be looking at increasing inventories in the fall.