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Quick Move Now Fall Through Index

Wednesday, 29 April 2009

Aborted Sales at 33%

The Quick Move FTI continues to fall with the lowest recorded figure for 19 months.

Although at least 1 in 3 sales* will still fall through this is a big improvement on last year and represents some good news for once.

So does this mean the property market has turned a corner? Unfortunately not, we believe that what we are seeing is cash rich buyers re-entering the market as prices fall. These are generally serious, confident buyers with secure finance so the number of aborted sales is falling.

With large deposits required and strict underwriting criteria it is proving difficult to get an affordable mortgage, so the vast majority are still unable buy. This stemming of demand has inevitably led to continued price falls which only further discourages buyers.

Until demand returns and competition for property increases we are going to see low sale volumes and falling prices. We expect the market will continue to deteriorate with a real recovery a long way off.

So finding a buyer remains the overriding problem, although if you are lucky enough to do so you are less likely to lose that buyer before completion.

*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.