With the market stabilizing, there is a decrease in the number of property sales that are not being completed

According to Spectre’s Q2 Market Report, as the market begins to stabilize, there has been an increase in completed sales compared to the past two years. Spectre’s analysis involved comparing Q2 figures to those from 2022, 2021, and a five-year average. This analysis revealed a decline in the rate of sales falling through, which had surged after the mini-Budget last autumn.

While the fall-through rate reached 31% in October 2022 – marking the highest point since the initial Covid lockdown – Spectre’s data demonstrates a significant 10% reduction by the end of Quarter 1.

Heather Staff, a co-founder at Spectre, commented:

“Our data indicates that the market is gradually stabilizing after a turbulent year characterized by economic uncertainties, rising inflation, and the pressures of cost of living.”

The previous year witnessed heightened competition among buyers, leading to inflated prices and high demand, which in turn resulted in rushed or overly ambitious offers. These offers eventually resulted in buyer’s remorse and rejected mortgage applications.

The current trend showcases a more measured and composed market, allowing buyers to thoroughly consider their offers before committing to a mortgage. This approach lowers the likelihood of a sale falling through.

Spectre’s data also highlights that a larger percentage of properties are opting to remain on the market, as withdrawal rates have decreased by 20% compared to the five-year national average.

Heather further added:

“While previous patterns may have favored sellers, our report illustrates that the market is now shifting towards a more balanced terrain for both sellers and buyers. Buyers are displaying greater caution and, as a result, some are delaying their home purchases until they are comfortably capable of affording it. On the other hand, sellers are finding themselves in a position where moving is a necessity and they might not have the luxury of changing their minds.”

The report indicates that 24% of price reductions this year have undergone multiple drops, showcasing the lingering impact of overpricing on the consumer mindset. Heather elaborated:

“This shift in price reductions signifies the market’s stabilization towards pre-pandemic norms. Year-to-date reduction values are nearly identical to 2019 figures, as opposed to declining.”

To navigate this evolving market successfully, estate agents will need to thoroughly comprehend these changes and be able to empathize with their clients and their evolving needs.