Big rise in number of sales fall-throughs reported.
GREAT NEWS RIGHT?
Let me explain!
This article was written on 11th October 24
Homebuyers are still struggling with higher mortgage rates and so more and more sales are falling through
The number of property transactions that have fallen through saw a quarterly rise of 18% according to the latest analysis by compliance firm Moverly, while withdrawals rose by 2.1% albeit off a much larger base.
The data shows that during the second quarter of 2024 a total of 76,619 property transactions fell through, while during the same period some 187,262 properties were withdrawn by vendors, which is equivalent to 2.4 withdrawals for every fall-through.
But withdrawals have a much greater impact on the UK housing market than fall-throughs because they cost estate agents considerable time and money
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Gemma Young, Moverly CEO, says: “Although a hold on interest rates since September last year has helped to steady the economic outlook, homebuyers are continuing to struggle with far higher interest rates than they’ve previously become accustomed to.
The market continues to suffer from the instability caused by the higher cost of borrowing.”
“So it’s hardly surprising that we’ve seen a sharp uplift in the number of sales falling through, as the market continues to suffer from the instability caused by the higher cost of borrowing.
“At the same time, a great deal of sellers are choosing to withdraw from the market and this is no doubt due to the fact that they simply aren’t gaining the interest required or at the price point they expected.”
So why is this Great News?
Well as investors it’s great to know that we could pick up some of these deals that have fallen through.
You see , when someone puts a house on the market with an estate agent they may either be lead by the agent on price they can achieve or have an unrealistic amount they would like for it.
When the sale falls through they start to realise that maybe the agent or their expectations are wrong and that if they need to sell, will have to accept a lower offer, one that is realistic to their circumstances
My Tip here is:
Ask the agents about properties that have just fallen through.
See if you can pay the right price for you and relieve the sender of the painful experience of the failed sale.
P.S. Whenever you are ready, there are three ways i can help:
- If you want more free stuff watch my video on working with agents
- GOAL Targeted 6 Month Coaching program
- Not sure what your current constraint is ? Book a 1-1 call and we’ll figure it out for you 🙂
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