ABORTED SALES FALL BELOW 35%
The Quick Move FTI has fallen below 35% for the first time since August 2007.Obviously this figure is based on property sales that are professionally qualified and managed. The true rate of fall through on the open market is likely to be much higher however the trend is relevant and could represent a positive change should it continue.
We have seen historically high levels of sales abort for last 18 months. This has been down to collapsing prices, buyer uncertainty and lack of mortgage funding.
Prices continue to fall (1.8% fall in February *Nationwide) and mortgages remain difficult to secure (number mortgages lent in 2008 lowest since 1974 *CML) so the change has been with buyer uncertainty.
We had expected this trend to develop and although it is on a small, fragile scale it represents some good news for once.
There are still very low levels of transactions and few people able or wanting to buy. However the buyers who are there are well-informed and have secure finances in place, they are fully aware of what they are doing and the sort of market they are buying into. Therefore when they make a formal offer they are less likely to experience finance issues or change their mind due to shock media stories and so are more likely to complete the purchase.
So is this the start of recovery? Well probably not but it is definitely a positive sign. The reality is that only a certain type of buyer is out there (cash, investor, well healed first time buyers or those able to borrow from parents). These buyers are just too few are far between and so won’t have a big impact on either transaction volumes or prices. Until the economy recovers and we see lending ease we will see further market decline.
What is the Quick Move FTI?
Not all property sales that are agreed go on to complete and the percentage of sales falling through varies greatly with prevailing market conditions.
When a chain collapses sellers can face a number of issues:
-Large delay in selling as whole marketing/sale process is restarted.
-Lose onward purchase.
-Remain exposed to changing market conditions.
-Lose out financially with costs sunk into solicitors, estate agents, home information packs, survey and mortgage fees often exceeding £2000.
Quick Move agreed over 500 sales last year but like any seller we have trouble with chains and sales falling through. This is despite a dedicated sales progression team and detailed assessment of every buyer, their finances and related chain. The average home seller doesn’t qualify buyers to the same degree, so the general market fall through rate is much higher.
The Quick Move FTI is a 6 month moving average measuring the percentage of agreed sales that fall through.
The index is uniquely placed to give a current indication of how market conditions are affecting general home owners looking to sell their property.
Quickmovenow.com specialises in the rapid cash purchase of residential property. And our professional and competitive service provides clients with a quick, secure and efficient sale.
We assist clients in a range of circumstances but if your specifically want the certainty of selling without the complications of a chain or have been involved in a broken chain and want to secure your onward purchase-Quickmovenow.com could help.
If you want more information please complete a free online estimate or contact us direct on 0800 068 3366.
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