Definition
Pending sales are properties under contract but not yet closed. They indicate near-term activity but aren't definitive like closed sales. Some pending deals fail to close.
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Pending sales represent properties with accepted offers but not yet closed, typically including 30-60 days of remaining contingencies and final steps. Pending sales are important indicators of near-term market activity and can predict future closed sales. However, pending sales differ from closed sales—some pending transactions fail to close due to appraisal issues, financing problems, or inspection contingencies. The ratio of pending to closed sales reveals how many transactions complete successfully.
Pro Tip
Rising pending sales indicate strengthening demand. But remember: some pending sales fall through. Watch pending-to-closed ratio.
Example
A market has 200 pending sales and 150 active listings, indicating strong buying demand. However, if pending sales have historically had a 10% failure rate, only 180 are expected to close.