- One third (30.32%) of house sales fell through in April 2012.
- Finance continues to be the main reason why many buyers cannot follow through to completion.
- Unlike previous years where the rate proved changeable, the 2012 fall through rate has remained fairly constant from January through to April.
Quick Move Now reports that the house sale fall through rate for April 2012 was 30.32%, so around one in three sales failed to reach completion. Such a high chance of fall through is difficult to manage for a company with an experienced team driving the sale process, let alone for an individual homeowner trying to juggle a chain of buyers. Once again, the main reason for sales faltering was finance so, in most cases, the seller was at the mercy of their buyer who was, in turn, at the mercy of their mortgage lender.
Donna Houguez, Market Analyst for Quick Move Now, comments:
The fall through figures remained at approximately 30% for the whole of the first quarter of 2012 and this pattern continued into April. We analysed the trend for January to April over the last six years and found that the 2012 rate has been the most consistent, as shown in the graph below. In previous years, the fall through rate has constantly fluctuated within the first four months and this is particularly evident when studying the rate for 2008 (in the graph above). The fall through rate for January to April in the years 2006-2011 proved changeable whereas, this year, fall through levels have barely altered thus far. It will be interesting to see whether fall through levels deviate from 30% over the coming months or whether this is a longer term stagnation.
Quick Move Now sells hundreds of properties each year and the fall through statistics are calculated month-on-month using a six-month average. In reality, the fall through rate for homeowners would be approximately 10 – 15% higher as Quick Move Now has a professional resale team proactively managing the completion process.
Quick Move Now is the UK’s leading home buyer, offering a quick, secure and hassle-free house sale. Our experienced team, efficient processes and substantial cash reserves allow us to make immediate purchases, enabling customers to sell their houses quickly and move on with their lives.