Quick Move Now provides one-of-its-kind data to property analysts to help with assessment of the housing market.
The house sale fall through rate for March 2012 was 30.03%, so just over one in three house sales did not result in completion. The chance of a sale falling through has remained similar since January 2009 and there is a correlation between the state of the property and mortgage markets and the level of sales that falter.
Donna Houguez, Market Analyst for Quick Move Now, comments:
The fall through rate in March 2006 at the peak of the market was 13.60%, compared to 30.03% in March 2012; the chance of a house sale falling through is currently more than double what it was in the same month six years ago, which shows just how difficult it has become to retain a buyer until completion. It is unlikely that the market will recover to the more manageable 2006 levels in the near future.
The longer the chain of people involved in a house sale, the higher the chance of fall through. Even if a vendor’s direct buyer is in a strong position for exchange and completion, the financial situation of other buyers further down the chain can cause problems.
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.