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Quick Move Now Fall Through Index

Thursday, 15 January 2009

ABORTED SALES REMAIN AT 39%

Well 2008 is over- And what a year, on average over 40% of sales aborted!

The index has never run at such a consistently high level. This has been caused by a combination of falling prices, consumer confidence and an associated freezing of mortgage lending. With lending drying up there was a drastic reduction in the number of first time buyers to the market, which in turn meant that building any sales chain was difficult if not impossible.

Unfortunately the same reluctance to lend from the banks also personified itself in the pulling of mortgage products after sales had been agreed. This coupled with the general uncertainty over falling prices and fear of negative equity meant that sales fell through at consistently record rates for most of the year!

So what does 2009 hold for us?
Well unfortunately its likely to be more of the same.
Although the initial shock and panic is now over the realty of a deepening recession will start to take hold. Further tightening of mortgage lending and uncertainty over price falls will continue to create casualties in respect of aborted sales, and with the onset of unprecedented redundancies the housing slump appears to have a further string to it’s bow.

The Index will remain at historically high levels until confidence returns to the housing and lending markets. We do not expect this to occur in 2009.