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Quick Move Now Fall Through Index

Monday, 9 January 2012

Aborted Sales Rate Heads Towards 30% Again

Quick Move Fall Through Index (FTI) - December 2011

Aborted Sales Rate Heads Towards 30% Again

Quick Move FTI* at 29.16%.




Fall through rates for December increased and are heading towards 30% again, proving that the slight decrease in November was an anomaly and gave false hope. We continue to experience a subdued market with the double concern of less buyers and higher sale abortion rates.

Many factors combine to create uncertainty within the market and, as a natural progression, house sales become unstable. Sale abortions are caused due to buyer reticence, a lack of buyer, seller and lender confidence, a lack of buyers in general, difficulties within the mortgage market, problems abroad and economic worries such as job insecurity, inflation and interest rates. With such a large number of contributing factors determining the successes and failures of the market, it is no wonder that nearly 30% of Quick Move’s sales are currently falling through.

In reality, the chance of a fall through would be a lot higher than 30% for homeowners. As a business, we have established an efficient and experienced team responsible for managing each individual sale which means that fall through rates can be kept to a minimum. Even with this team in place, sale abortion rates remain high which means that homeowners face an even higher risk of sale abortion and the impact is magnified. Not only has Quick Move Now’s sale abortion rate increased, the amount of sales agreed has decreased which shows that finding a buyer in a position to proceed is becoming ever more difficult.

Homeowners desperately want some good news to carry them into 2012 but as we start the New Year, it is looking more and more likely that the tough market conditions will continue; experts are advising that the best we can hope for is more of the same as the likelihood is that conditions will worsen. The economy shows no real sign of recovery so the property market will in turn remain weak. Unless buyers regain faith in the market, can afford deposits and mortgages and can avoid economic troubles, we won’t see a significant improvement for a long time to come.

*This figure is based on house sales that are professionally qualified and managed so the true rate of fall through for normal house buyers and sellers is likely to be much higher.

posted by Quick Move at 13:23 Comments Links to this post

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Tuesday, 6 December 2011

Aborted Sales Rate is now 26.8%

Quick Move FTI at 26.8% for November.

 
Unusually, especially for the time of year, Quick Move’s fall through rates for November were slightly lower than for the previous month; we are wary of this improvement, however slight, and are endeavouring not to be fooled into a false sense of security. The lower fall through rate masks the true story and gives false hope: it has been increasingly more difficult to secure sales as buyers able to proceed are rare. Overall, properties have been on the market longer and asking prices have had to be reduced numerous times in order to affect a sale. Many viewers are stuck in chains with properties to sell, struggling to obtain mortgage funding or raise a deposit or have lost confidence in the housing market and economy. As a result, finding a buyer is very difficult and, even when a buyer has been secured, 26.8% still signifies a high chance of fall through.

Within the company, we have an individual department responsible for managing the sale progression of our properties yet we still cannot rule out fall throughs. Although our fall through rates for November decreased slightly, the improvement is misleading and the rate would be higher and more difficult to manage for independent home sellers, especially in a falling market with a high level of asking price reductions and prolonged periods spent trying to sell. The housing market continues to be unpredictable and unstable.

Unfortunately, sales abortions are unavoidable. There are number of factors which can cause a sale abortion which include problems within the economy such as job uncertainty, redundancies, interest rates and inflation, the difficulty of obtaining mortgage lending and raising a deposit, other buyers within the chain pulling out, problems at survey and uncertainty within the market in general. As a result of the current economic problems, people are often reticent and are pulling out of sales at different stages of the process because they are afraid of committing.

Many homeowners are desperate for a change of fortune in 2012 and are reliant on the economic situation improving in order to sell their properties. An imminent revival within the economy is highly unlikely and predictions suggest that we could be waiting until the end of next year before we see signs of recovery. Without recovery within the economy, the housing market cannot be expected to pick up. If predictions are correct, 2012 is set to be as difficult and concerning as 2011: only time will tell.

*This figure is based on house sales that are professionally qualified and managed and the true rate of fall through for normal house buyers and sellers is likely to be much higher.

posted by Quick Move at 16:53 Comments Links to this post

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Wednesday, 9 November 2011

Aborted Sales Rate remains around 30% in October


Quick Move FTI* at 29.58%.

Fall Through Rates for October remain similar to previous months and continue to hover around 30%. Within a business, a fall through rate nearing 30% is difficult to manage; for a homeowner trying to sell, the impact is magnified and can cause even more worry, stress and delay. Not only have Quick Move Now’s sale abortion rates remained similar, the amount of sales agreed has decreased which shows that, as the year end approaches, less and less people are able to find buyers.

There are a number of factors which affect sales and abortions can occur due to financial issues (including mortgage lending and deposits), economic difficulties (redundancy, job uncertainty, inflation) and general problems (such as buyers lacking confidence in the market and chains collapsing) among others.

Whereas in previous months, lots of buyers were becoming reticent and pulling out of sales after their offer had been accepted, recently it seems that many buyers aren’t keen to even make offers. People who are in a position to buy and able to proceed are in the minority anyway so, if these buyers aren’t willing to commit, the market conditions will worsen and the difference between the high numbers of properties on the market and the falling number of buyers will become steeper. Again, we find ourselves in a buyers’ market but the number of buyers able to proceed appears to be dwindling.

As predicted, the fall through rates have remained rather constant and the worry of escalating sale abortions still lingers. It can become increasingly more difficult to sell over the winter period so lots of homeowners may find themselves trapped on the market well into the New Year, unable to find a buyer and make the move or fresh start they desire. There don’t seem to be any signs of recovery within the economy or the housing market so we may see conditions worsen over the next few months and the uncertainty and instability could continue into 2012.

 
*This figure is based on house sales that are professionally qualified and managed and the true rate of fall through for normal house buyers and sellers is likely to be much higher.

posted by Quick Move at 11:32 Comments Links to this post

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Tuesday, 25 October 2011

Aborted Sales Rate over 30%

Quick Move FTI* at 30.46%.



Unfortunately, whereas there had been a plateau in the fall through rates between May and August, September saw an increase which spells further trouble for the housing market. The prospects for the latter part of 2011 and beginning of 2012 look even gloomier considering the fact that the number of sales agreed remains well under half the sale levels seen in 2007. Low sales volumes and an increasing fall through rate is a double blow and, for the ordinary vendor especially, causes considerable heart ache and cost.

Sales fall through due to a number of reasons: it can be due to the difficulty of obtaining mortgage lending and raising a deposit, other buyers within the chain pulling out, problems at survey, job insecurity and uncertainty within the market in general. As a result of the current economic problems, more and more people are becoming reticent and are pulling out of sales at different stages of the process because they are afraid of committing.

Even with a dedicated team managing the sale progression of our properties, abortions are unavoidable. The fall through rate would be higher and even more difficult to manage for independent home sellers, especially in a falling market with a high level of asking price reductions and long periods of time being spent on the market. It is not predicted that the economy will recover soon either which could mean more unemployment, falling asking prices, a lack of mortgage lending, higher inflation and, ultimately, an even higher rate of fall throughs if vendors are lucky enough to secure a sale in the first place.

Troubling predictions for the economy and the housing market extend into 2012 and, therefore, fall through levels may remain at 30% or even increase over the coming months as 2011 comes to a close. Sale abortions at this time of year result in the need to market over the winter period when the number of viewings traditionally decreases and the cost of maintaining a property increases due to the cold weather. Offers from buyers in a position to proceed are notoriously difficult to secure and, unless vendors are dealing with genuine cash buyers, fall through rates will inevitably rise.

*This figure is based on house sales that are professionally qualified and managed and the true rate of fall through for normal house buyers and sellers is likely to be much higher.

posted by Quick Move at 20:47 Comments Links to this post

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Thursday, 22 September 2011

Aborted Sales Rate At 28%


Quick Move FTI* at 28%.

We continue to experience a subdued market place with similar levels of uncertainty amongst buyers and sellers alike.

Confidence in the market remains low as more and more people find themselves stuck in chains with a high chance of the chain collapsing. The more people involved in the chain, the higher the risk of collapse.

Even with a dedicated team managing the sale progression of our properties, abortions for our company are unavoidable. The fall through rate would be higher and even more difficult to manage for independent home sellers, especially in a falling market with a high level of asking price reductions and long periods of time being spent on the market.

The high level of sales falling through can be attributed to many different factors from general economic worries to difficulty obtaining mortgages to survey problems and concerned buyers.

Market conditions are not expected to improve throughout the latter part of 2011. It is increasingly more difficult for buyers applying for mortgages, the economy does not appear to be recovering and even when buyers are found, there is no guarantee that the sale won’t fall through. Many people feel that the sale of their property is out of their hands as it is dependent on so many other factors and relies on other buyers. With Quick Move Now, a sale is guaranteed and, as we are cash buyers, a mortgage is not required in order to buy which means that homeowners can sell efficiently, assuredly and without the doubt associated with a traditional house sale.

*This figure is based on house sales that are professionally qualified and managed and the true rate of fall through for normal house buyers and sellers is likely to be much higher.

posted by Quick Move at 13:32 Comments Links to this post

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Monday, 20 June 2011

Aborted Sales Rate hover around 30%

Quick Move FTI* remains at 30%.

The property market has remained very subdued during 2011 and the usual spring selling season seems to have passed us by.

With it being so difficult to find a buyer, a fall through rate of 30% is the final straw for many home sellers.

As usual there are many reasons for aborted sales. Job insecurity, nervous buyers and chain related problems. However the main problems still relate to buyers securing mortgage finance. Mortgage companies and banks are making it very difficult for most buyers to get a mortgage.

Many buyers who have a mortgage agreed in principle when they first start looking at properties then find their application rejected by the lender. This means that an agreed sale is very uncertain right up until the mortgage offer being made and formal exchange of contracts.

Unfortunately we don’t see this situation changing in the short term. There is still a concern of falling house prices and there is no real appetite for more lending by the banks.



*This figure is based on house sales that are professionally qualified and managed and the true rate of fall through for normal house buyers and sellers is likely to be much higher.

posted by Quick Move at 12:16 Comments Links to this post

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Thursday, 10 March 2011

Aborted Sales Rate Rises to 34%

Quick Move FTI* increases to 34%.

The second half of 2010 saw the rate of aborted sales gradually increase and this trend seems to have continued into 2011.

House sales fall through for many reasons. Common causes are a buyer or seller changing their mind, job insecurity, issues at survey and problems obtaining mortgage finance.

The reason why aborted sales are so common is that the majority of house sales in the UK depend on a chain of other transactions. If one link in the chain breaks then every other property sale is at risk and so the number so sellers/buyers effected increases exponentially.

Unfortunately with market conditions likely to remain difficult during 2011 it is likely that many more house sellers and buyers will experience a chain break situation.

*This figure is based on house sales that are professionally qualified and managed and the true rate of fall through for normal house buyers and sellers is likely to be much higher.

posted by Quick Move at 15:27 Comments Links to this post

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