Pending home sales have dropped by 18.7% year-over-year in 2023. That’s not all. There has been a continuous decline in pending home sales in the last 3 months within all four regions of the US. September 2023 recorded a whopping 7.1% drop.
In this blog, we will dive deep into understanding what a pending sale means and how it affects your home-buying process.
Key Takeaways
- Buyers have numerous properties to look for in recent days. Though the demand is high, the fall of 18% helps the buyers to get larger exposure to buy properties.
- 90% of buyers bought homes at a lower price than the actual market value.
- Due to a 7.1% fall in August 2023, mortgage rates have risen to 8%.
What Does Pending Mean in Real Estate?
A pending status on a house indicates that the homeowner has accepted an offer. This house is not available for showings. Pending is a stage further along than “contingent” or “under contract.”
Pending Sale vs. Contingent
- Pending means the homeowner has accepted an offer, and the deal will be closed anytime.
- A contingent sale means that home inspection and appraisal aren’t successful. The status will still be ‘active.’
What is the Difference Between Pending and Under Contract?
- Under contract means the seller has accepted an offer, but contingencies remain.
- Pending means all contingencies have been met, and the sale is in the final stages of closing.
Reasons a Pending Sale May Come Back on the Market
Below are the reasons why a pending sale house could come to the market again.
- Financing Issues – Buyers may encounter difficulties securing a loan. They may even fail to meet the lender’s requirements.
- Inspection Problems – If major issues are discovered during home inspection, buyers may choose to terminate the sale.
- Buyer’s Remorse – Buyers could get cold feet or have second thoughts about their decision to buy a house.
- Other Major Reasons – Due to a sudden change in the market conditions or if the buyer’s employment status changes unexpectedly.
Can You Make an Offer on a Pending House?
Sometimes, it is possible to make an offer on a pending house. However, it ultimately depends on the seller’s circumstances and preferences. You can consult with a real estate agent to make an offer.