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Quick Move Now Fall Through Index

Thursday, 10 May 2012

What are the chances of a house sale falling through?

 

Quick Move Now house sale fall through index – April 2012

  • 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.”

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.
 
Company Information:
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. For further industry analysis and comment, please contact donna.houguez@quickmoveproperties.co.uk.
 
Tel: 0800 068 3366
 

posted by Quick Move at 13:08 Comments Links to this post

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Wednesday, 18 April 2012

What are the chances of a house sale falling through?

Quick Move Now house sale fall through index – March 2012



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.”

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.

Company Information:
Quick Move Now is the UK’s leading home buyer, offering a quick, secure and hassle-free house sale. Experienced researchers and independent valuers work together to ensure that offers made are fair and a friendly, supportive team looks after the customer every step of the way. For further industry analysis and comment, please contact
donna.houguez@quickmoveproperties.co.uk.

Tel: 0800 068 3366
www.quickmovenow.com

posted by Quick Move at 17:45 Comments Links to this post

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Wednesday, 14 March 2012

What are the Chances of a House Sale Falling Through?

Quick Move Now House Sale Fall Through Index - February 2012



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 February 2012 was 29.32% and so the chance of fall through has remained at around one in three for the past year. Despite the incentive of the the first time buyers’ stamp-duty holiday, fall through levels were still in line with consistent rates and didn’t show any drastic change.

Danny Luke, Business Manager for Quick Move Now, comments “February’s fall through figure is lower than it was at the same time last year yet is still a long way adrift of the pre–crash rates of 2006 and 2007 and individual homeowners are most at risk of losing a buyer.”

“The main causes of a house sale fall through still involve finance. Quickmove has found that potential buyers struggle to raise deposits or obtain mortgage lending and they only hear about potential mortgage problems near to completion, which is distressing for all involved. Government schemes such as the right to buy council houses and the 5% deposit mortgage guarantee for new homes may help to ease the pressure on the housing market – it will be interesting to see what sort of effect they have.”

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. 

Company Information:
Quick Move Now is the UK’s leading home buyer, offering a quick, secure and hassle-free house sale. Experienced researchers and independent valuers work together to ensure that offers made are fair and a friendly, supportive team looks after the customer every step of the way. For further industry analysis and comment, please contact donna.houguez@quickmoveproperties.co.uk.

Tel: 0800 068 3366
www.quickmovenow.com

posted by Quick Move at 12:35 Comments Links to this post

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Wednesday, 15 February 2012

What are the chances of a house sale falling through?

Quick Move Now House Sale Fall Through Index - January 2012



Quick Move Now provides one-of-its-kind data to homeowners to help with assessment of the housing market.

The house sale fall through rate for January 2012 was 30.47% so around one in three house sales did not result in completion. Dan Luke, Quick Move Now’s Business Manager, comments: “Although significantly lower than the peak seen during 2008, the fall through rate has remained stagnant at around 30% for the past 12 months. Taking out the seasonal variation by comparing the figures for January (see below), it is apparent that the rate has remained fairly constant for the past four years and it is not expected to drop back to the 2006 level of under 15% at any point in the near future”.

Fall Through Rate – Annual Comparison

January 2009     January 2010     January 2011     January 2012
34.57%     36.13%  30.72% 30.47%

“Such a consistently high fall through rate is difficult to manage for a company, let alone an individual homeowner. The most common reason for house sale fall throughs at present is lending issues. Often the problem is not with the direct buyer, but with a buyer further down the chain”.

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.

Company Information:
Quick Move Now is the UK’s leading home buyer, offering a quick, secure and hassle-free house sale. Experienced researchers and independent valuers work together to ensure that offers made are fair and a friendly, supportive team looks after the customer every step of the way. For further industry analysis and comment, please contact donna.houguez@quickmoveproperties.co.uk.

Tel: 0800 068 3366
www.quickmovenow.com

posted by Quick Move at 15:50 Comments Links to this post

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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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