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.
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