The rate of property sales falling through before completion saw a significant decrease in the second quarter of 2023, as per the latest figures from Quick Move Now.
The data revealed that just under 25% of property sales failed to reach completion, a significant drop from the previous quarter’s 55.8% fall-through rate.
Despite the current economic uncertainty, rising interest rates, and concerns about falling property prices, only half of the failed sales in the second quarter occurred due to buyers changing their mind and withdrawing from the transaction.
One-fourth of failed property sales happened because the buyer was unable to secure a mortgage, or their mortgage product was replaced with a pricier alternative.
The remaining 25% of failed sales were a result of chain-break or the seller pulling out from the sale.
“The current fall-through rate is the lowest we’ve witnessed in almost two years, which is promising news for those planning to buy or sell,” said Danny Luke, Quick Move Now’s managing director. He cited the rise in interest rates from around 4% to 6.7% for the best 2-year fixed mortgage deals as a significant factor causing many prospective buyers to reconsider their decision to move.
He further added: “A majority of potential buyers are adopting a ‘wait and see’ approach due to worries about future interest rate hikes and their potential impact on property prices.”
However, he noted that those still in the market are serious and committed, deciding to proceed despite the uncertainty. “They are only making an offer on a property if they have a serious need to move and are committed to seeing the sale through to completion,” Luke concluded.
