Aborted Sales Rate Heads Towards 30% Again
Quick Move Fall Through Index (FTI) - December 2011Aborted 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.









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