According to data from Quick Move Now, 31.3% of property sales fell through before completion during Q1 2024. However, are these numbers as shocking as they first sound or is there more at play here?
Although the COVID-19 pandemic has created unprecedented market conditions in recent years, seeing around a third of property sales fall through isn’t as rare as you might think.
According to quarterly ‘Fallthrough Indexes’ posted by Quick Move Now, the expectation of around 30% of property sales falling through before completion is relatively normal. The biggest exception to this was 2020, during the height of the pandemic.
Fallthrough rates have varied between circa 25% and 40% since 2018, however, even accounting for the impact on the housing market caused by COVID-19, the average ‘fallthrough rate’ between 2018 and 2023 was 30.5%.
With so many property industry outlets commenting on the monthly and yearly performance of ‘fallthrough rates’, many are not reflecting on the causes of stalled property sales. Estate agents should ask themselves why fallthrough rates are steadily around 30% and how they help clients successfully buy and sell their homes?
Market volatility is often cited as a catch-all reason for high fallthrough rates, but this is a highly ambiguous term that sheds little light on what could most likely cause a house sale to stall. According to Quick Move Now, it is not uncommon for between 40% and 50% of failed house sales to be caused by buyers changing their minds and attempting to renegotiate the sale price.
While price is always going to be a contentious issue for homebuyers, there are steps estate agents can take to guard against sales falling through as buyers seek to avoid overpaying for property.
Getting an accurate and fair property valuation as soon as possible is an obvious way to help mitigate this problem. An experienced property valuer will be able to evaluate the value of a property while assessing similar properties that have sold locally and taking into account current market conditions.
Armed with this information, experienced estate agents should be well-equipped to market the property to the right buyers to ensure the greatest chance of finding a buyer who will be willing and able to commit to purchasing the property.
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If you are planning to sell your home, reach out to Edward Mellor today for a free, no-obligation property valuation to get your property journey off to the right start.
As the Bank of England (BoE) battles to bring inflation down to the government’s target of 2%, interest rate changes continue to impact market confidence, with implications for both lenders and borrowers.
Lenders are unsure if or when the BoE will lower base rates, leading to them keeping a close eye on market fluctuations and sometimes pulling mortgage products in as little as 15 days of them being on the market.
Quick Move Now data suggests that during Q1 2024, as many as 19% of stalled property sales failed because the buyer could not secure a suitable mortgage.
Buyers should obtain an agreement in principle (AIP) as soon as they decide to search for a new home to show lenders and property vendors that they are serious about buying. Working with a mortgage advisor can help buyers compare hundreds of mortgage products quickly and get expert advice on the best option for their circumstances.
Despite fluctuations in mortgage rates, there are more mortgage products available now than in recent years and that’s not the only indicator that the property market is warming up.
Data from Chris Watkin writing for Property Industry Eye also shows that the UK saw 30,312 new listings during Week 14 2024. This year’s YTD listings stand at 476,586, 8.9% higher than the historical eight-year YTD average of 437,389 and 8.6% higher YTD 2023.
The property market is currently highly active, so getting expert mortgage advice sooner rather than later can help to ensure that the onward buying process precedes much more smoothly.
With over 40 years of industry experience, Edward Mellor Estate Agents is the leading agency for helping people buy and sell property across the North West. With an extensive database of registered buyers and a bespoke marketing model, we are experts in promoting your home to the right buyers to help guarantee a sale.
Our mantra is ‘all your property needs under one roof ‘ and we support clients at every stage of the property journey from valuation to completion. We also offer an inclusive in-house suite of services to support the buying process, from valuations and property surveys to mortgage brokerage and home insurance services.
Having these services available locally and a commitment to be the best helps to ensure a smooth sale process. It is also why our ‘fallthrough rate’ was just 24% compared to a national average of 31.3% during 2023.
If you are looking to sell your property, don’t hesitate to contact us today.
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