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More sales are continuing to completion than in the last two years as the market begins to level out, according to Spectre’s latest market report.
The prospecting tool released its data for the second quarter if the year, comparing the figures to those from 2022 and 2021, as well as a five-year average.
Spectre’s market report contains analysis and insight from those working with the PropTech firm, as well as data-driven predictions for the market to come in the third quarter.
The latest figures show that fall-through rates have declined following a spike after the mini-Budget last autumn.
While the rate climbed to 31% in October 2022 – the highest it had been since the first Covid lockdown – Spectre’s data shows this had fallen 10% by the end of Q1 ’23
Heather Staff, co-founder at Spectre, 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.”
Spectre’s data also shows a larger proportion of properties are now choosing to remain on the market, as withdrawal rates are down 20% on the five-year national average.
Heather added: “This further reinforces that we are entering a less volatile period, with people taking more time to decide what they want and fewer rash, high-pressure decisions.
“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.”
Spectre’s market report further reveals that almost a quarter – 24% – of reductions this year have had more than one price drop, as the knock-on effect of overpricing continues to impact a shift in consumer mindset.
Heather added: “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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