Estate agency marketing firm Spectre has published a report showing that fewer property sales are falling through than in recent years.
The Spectre Q2 Market Report compared figures from 2022 and 2021 along with an average figure for the past five years. Although there was a spike in property sales falling through after the mini-budget of autumn 2022, the overall figures have fallen.
The peak was in October 2022, when 31% of sales fell through. This was the highest since the first Covid lockdown. But by the end of Q1 of 2023, this had dropped 10%.
Heather Staff, Spectre co-founder said: “Our data shows the market is starting to calm down after quite a turbulent year, stemming from economic uncertainty, rising inflation, and cost of living pressures.
“Last year saw more competition between buyers, with over-inflated prices and high demand leading to rushed or over-budget offers – which eventually converted into buyer regret and rejected mortgage applications.
“What we’re now seeing is a slower, slightly calmer market, giving buyers the opportunity to fully consider their offers before applying for a mortgage and reducing the likelihood of a sale falling through.”
The report also notes that more properties are staying on the market rather than being withdrawn. The number of homes being taken off of the market is down 20% on the five-year national average.
Heather explained: “Although previous patterns may have favoured sellers, our report shows the market is now transforming into a more level playing field for both sellers and buyers. Buyers are being more cautious, and some are therefore putting off purchasing a home until they can comfortably afford it, while vendors are now in a position of moving out of necessity and might not have the luxury of changing their mind.”
The data revealed that 24% of the properties that had been reduced in price had had more than one price drop. This follows a period of high prices, with the market now dropping back.
Heather said: “This shift in price reductions signifies that the market is stabilising to normal pre-pandemic levels, with year-to-date reduction values within one per cent of 2019 figures, rather than declining.
“To make the most of this evolving market, estate agents will have to work hard to understand the changes and be able to relate to their clients and their needs.”
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