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Quick Move Now Fall Through Index Shows The Number of House Sales Falling Through is Falling Is Recovery On The Way?



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Aborted Sales at 29% For June

The Quick Move FTI* falls for the fourth month in a row.

So are we witnessing a recovery? Well the answer is yes and no.

Yes some homeowners are now prepared to sell and there are some buyers out there. This is a response to the availability of mortgages improving slightly and the rate of price falls easing. Which has in part help reduce the number of sales aborting.

However we are still a long way off a healthy market. According to the HMRC there were just 65,000 property sales in June compared to 140,000 in the same month in 2007. With prices expected to continue falling in the short to mid term we are still a long way off a true recovery.

Unfortunately if recovery is measured by historic average transaction levels alongside prolonged price increases then we are looking at years and not months before a true market recovery.

*This figure is based on property sales that are professionally qualified and managed and the true rate of fall through on the open market is unfortunately much higher.

Aborted Sales at 30% For May

The Quick Move FTI continues to fall as the housing market stutters into life.

We have gone through one of the fastest and deepest property declines in history. With prices falling so rapidly and mortgages difficult or impossible to secure many buyers/sellers were scared off and put their move plans on hold.

With a slight easing of mortgage availability and buyers who now need to move (work relocation, increasing family size etc.) we are seeing a few more potential buyers. However due to the market many sellers took their property off the market leading a slight lack of supply.

With less choice it means that buyers are less likely change their mind and/or swap properties reducing aborted house sales. While there is a disparity in demand and supply we would expect fewer aborted sales.

Aborted Sales at 33% in April

The Quick Move FTI continues to fall with the lowest recorded figure for 19 months.

Although at least 1 in 3 sales* will still fall through this is a big improvement on last year and represents some good news for once.

So does this mean the property market has turned a corner? Unfortunately not, we believe that what we are seeing is cash rich buyers re-entering the market as prices fall. These are generally serious, confident buyers with secure finance so the number of aborted sales is falling.

With large deposits required and strict underwriting criteria it is proving difficult to get an affordable mortgage, so the vast majority are still unable to buy. This stemming of demand has inevitably led to continued price falls which only further discourages buyers.

Until demand returns and competition for property increases we are going to see low sale volumes and falling prices. We expect the market will continue to deteriorate with a real recovery a long way off.

So finding a buyer remains the overriding problem, although if you are lucky enough to do so you are less likely to lose that buyer before completion.

*This figure is based on property sales that are professionally qualified and managed and the true rate of fall through on the open market is unfortunately much higher.


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