House sale fall through index – Q2 2012
- Approximately one third (29.74%) of house sales fell through in Q2 2012.
- House sale fall through rates have remained consistent for the last 18 months.
- Difficulty of securing mortgage finance is the most common problem preventing house sales from completing.
The average house sale fall through rate for Q2 2012 was 29.74%, meaning one in three sales failed to reach completion and the consistency that we saw in the fall through rate in Q1 continued throughout Q2. The most common reason, at 65%, for a house sale not completing is the difficulty in securing mortgage finance.
Donna Houguez, Market Analyst at Quick Move Now, comments:
The house sale fall through rate has barely changed over the last 18 months and there are still no signs of the rate dropping towards 2006 levels.
Post-crash, mortgage lending requirements were much stricter than perceived, triggering a high rate of application refusals and resulting sale fall-throughs. The levelling off we are seeing now is happening because although lending criteria is still stricter than pre-2007, buyers are more realistic about whether they will meet the mortgage lending criteria before making offers.
Despite a reduction in the rate of sale fall-throughs remaining elusive for now, the stable plateau we are seeing may begin to marginally improve market confidence.
Quick Move Now provides one-of-its-kind data to property analysts to help with assessment of the housing market.
Data Calculation: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.