Quick Move Now Fall Through Index

Tuesday, 27 April 2010

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Thursday, 8 April 2010

Over 37% of Sales Aborting

Quick Move FTI* stays at over 37% during March.

The improvement in the aborted sale rate witnessed during the first half of 2009 now seems a distant memory.

We have seen the number of sales falling through steadily increase over several months so that we are now experiencing levels well above long-term average.

The cause of many of these aborted sales is uncertainty. House buyers and sellers are unsure whether house prices are rising or falling, they are also concerned about looming public and private sector redundancies. The banks and mortgage lenders are still concerned about over exposure to the property market and are withdrawing or refusing mortgages to many home buyers.

With a looming general election and the prospect of huge government cost cutting and tax rises, the near future is likely to get even more uncertain.

When life is uncertain homes buyers will become more nervous about making huge commitments such as buying a home. As always house sales in the UK nearly always involve a chain a dependent sales. If just one sale falls through, the rest of the chain collapses!

*This figure is based on house sales that are professionally qualified and managed and the true rate of fall through for normal house buyers and sellers is likely to be much higher.

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Thursday, 25 February 2010

Aborted Sales at 36%

Quick Move FTI* dipped slightly to 36% in January.

The New Year has done nothing to improve the volume of aborted sales.

The Stamp Duty holiday came to an end in December and it seems that a significant number of buyers forced through their purchase before the change. We had expected a corresponding reduction in the FTI as the incentive to keep chains together was increased, however this didn’t materialise.

With more than one in three sales aborting before completion the situation remains very uncertain for buyers and sellers. For those who need to sell and those who want to buy their dream house an aborted sale could have serious repercussions.

So what does the rest of the year hold for broken sale chains?

Well we expect the fall through rate to remain high for the foreseeable future.

Mortgage finance still remains difficult secure and as banks remain risk adverse many people who make offers will be unable to secure an actual mortgage offer.

Last year we saw a lot of cash buyers of property. As house sale volumes increase this year we will see more house sale dependent buyers in the market. The resulting sale chains vastly increase the chances of a failed house sale as if just one link breaks the whole chain collapses.

If you want to avoid the uncertainty of the market and sell your house quickly Quick Move Now can help, follow the link to learn more about our service.

*This figure is based on house sales that are professionally qualified and managed and the true rate of fall through on the open market is unfortunately much higher.

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Tuesday, 26 January 2010

Aborted Sales at 37%

Quick Move FTI* rose to 37% this month.

What a year 2009 turned out to be. We have seen the property market flip from suicidal to wildly optimistic and everything in between.

There can be no argument that the market has proved very difficult and confusing for buyers and sellers alike.

In December the fall through rate rose to 37%. This means we have seen a steady increase the sale abort rate since the year low of 29% in June.

We have seen that there are house buyers with secure finance and large cash deposits who are still able to buy. These buyers have been chasing a tiny pool of properties on the market as most homeowners have weathered the storm and removed their homes from the market. This demand and constrained supply were at there most extreme in June which was reflected in a low number of aborted sales.

Since June we have seen “normal” home buyers gradually enter the market, these buyers have often made offers only to find that mortgage finance is not available. The volume of property available has also increased as market perceptions have changed, which has increased choice for home buyers and made them more likely to “swap” purchases. Both these factors have led to a gradual increase in the fall through rate.

An average of 32% of sales aborted during 2009 and with prevailing conditions we would expect the aborted sale rate remaining above this level well into 2010.

If you want to avoid the uncertainty of the market and sell your house quickly Quick Move Now can help, follow the link to learn more about our service.

*This figure is based on house sales that are professionally qualified and managed and the true rate of fall through on the open market is unfortunately much higher.

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Friday, 20 November 2009

Aborted Sales Over 34%

Quick Move FTI* rose to over 34% this month.

The UK housing market remains a confused and difficult environment. The market conditions are unusual, unsustainable and we are seeing massive regional differences.

Despite apparently good news coming from the housing market we are seeing continued increases in the number of aborted sales. Unfortunately all the news is based on average, national statistics which mask the realities for individual buyer and sellers. Most of the improvement in statistics has been driven by sales in London and South East, the picture unfortunately is much bleaker for people in other parts of the country.

Early this year only serious buyers with secure finance were buying property. Due to the torrent of “good” news stories over the last few months we have seen more “normal” buyers returning to the marketplace. Many of these buyers are not as confident and may not be able to get secure, affordable mortgage lending which has in part led to more sales aborting.

This situation is only likely to get worse as more buyers and stock enters the market. We would expect the rate of aborted sales to rise again in the New Year.

If you want to avoid the difficult market conditions and sell your house quickly Quick Move Now can help, follow the link to learn more about our service.

*This figure is based on house sales that are professionally qualified and managed and the true rate of fall through on the open market is unfortunately much higher.

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Thursday, 12 November 2009

Aborted Sales Climb to 33%

Quick Move FTI* continues to increase as we witness more sales aborting before completion.

Despite many headlines about rising prices the housing market remains a very uncertain place with huge market variation between areas. This means most people are still finding selling their home an uncertain and time consuming process.

One of the impacts of the current market is that we are seeing more sales falling through leading to frustration for both house buyers and sellers.

We are seeing normal home buyers being attracted back to the market. The majority of these house buyers also need to sell a house and don’t have the large deposits. These buyers are more likely to have difficulties securing a mortgage and may also have a complicated sales chain. This increases the chances of at least one link in the sales chain breaking and is leading to over 1 in 3 sales falling through.

Another driver of aborted sales, especially in sort after areas, is that house sellers are increasingly swapping buyers after the sale is agreed, for higher offers. The undersupply of property is causing competition, rising prices and therefore aborted sales. This phenomenon is extremely area specific and most homeowners are unfortunately not as lucky and are continuing to experience very difficult market conditions.

If you want to avoid the difficult market conditions and sell your house quickly Quick Move Now can help, follow the link to learn more about the benefits are service can offer you.

*This figure is based on property sales that are professionally qualified and managed and the true rate of fall through on the open market is unfortunately much higher.

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Monday, 28 September 2009

Aborted Sales at 30% For August

The Quick Move FTI* has increased to 31% of sales falling through.

The last few months has seen activity returning to the housing market as we have witnessed serious, cash rich house buyers stepping in to buy discounted houses. These home buyers often don’t have to rely on selling another house and are therefore less likely to pull out of the sale.

However this month we have seen the volume of aborted house sales rise over the 30% level.

We believe this is because normal buyers are stepping back into the market, who are neither cash rich or experienced investors. Mortgage lending is still massively constrained and any buyer with a small deposit or slightly dubious history is struggling to get finance. We have seen a corresponding increase in aborted sales as potential buyers fail to secure a mortgage offer.

*This figure is based on property sales that are professionally qualified and managed and the true rate of fall through on the open market is unfortunately much higher

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Quick Move Now Fall Through Index

Tuesday, 27 April 2010

This blog has moved

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Thursday, 8 April 2010

Over 37% of Sales Aborting

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Thursday, 25 February 2010

Aborted Sales at 36%

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Tuesday, 26 January 2010

Aborted Sales at 37%

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Friday, 20 November 2009

Aborted Sales Over 34%

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Thursday, 12 November 2009

Aborted Sales Climb to 33%

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Monday, 28 September 2009

Aborted Sales at 30% For August

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