Broken Chains

[Bloo Loo]

Working lunch today:

Henry Prior, a "housing expert" says that an NAEA member reports that they have 47 sales backed up waiting for mortgage approvals.

Sort of adds weight to the argument that many make offers and actually cant get the finance.

I expect to see a good many of the recent SSTC's to become available again soon

[Timm]

Working lunch today: Henry Prior, a "housing expert" says that an NAEA member reports that they have 47 sales backed up waiting for mortgage approvals. Sort of adds weight to the argument that many make offers and actually cant get the finance. I expect to see a good many of the recent SSTC's to become available again soon

More information is needed to make this information useful.

How many sales does this agent make a week? If they are agreeing five to six sales a week, then a pipeline of 47 sales is to be expected and no big deal. If they are agreeing one sale a week, then this is big news.

[Bloo Loo]

More information is needed to make this information useful.

How many sales does this agent make a week? If they are agreeing five to six sales a week, then a pipeline of 47 sales is to be expected and no big deal. If they are agreeing one sale a week, then this is big news.

agreed, but we are talking Declan here.....and its the Beeb, so I dont suppose we will get all the facts...maybe the NAEA can help us.

[Sybil13]

Working lunch today:

Henry Prior, a "housing expert" says that an NAEA member reports that they have 47 sales backed up waiting for mortgage approvals.

Sort of adds weight to the argument that many make offers and actually cant get the finance.

I expect to see a good many of the recent SSTC's to become available again soon

If you add to those "backed up sales" the ones spoken about by the NAEA in their June report:

Commentators have speculated that the shortage of homes for sale, combined with rising interest from potential buyers, may be supporting prices, although others have warned that the shortage of supply could derail the recovery. But the NAEA said the vast majority of buyers also had a property to sell, which they had not yet put on the market, and in time, this would help to reduce the shortfall.

Maybe First Rung were correct when they said:

UK house prices (asking) have stopped their recent 'dead cat bounce' according to Miles Shipside and his team at Rightmove. Estate agents now have on average seventy properties each on their books, and are only selling ten per month according to RICS...

However, this RICS contention is not supported by recorded data. With only 35,000 property sales a month, according to Land Registry, and the head count of agents being circa the same this would suggest that agents are in fact only selling on average one property per month.

So properties are going Under Offer and STC to people putting in SILLY offers before even getting a mortgage or even selling their own property, well the news just gets better and better and now the BOE have decided for now not to extend QE, is it possible we could now start to witness some sense of reality enter the real estate market ?

NAEA used to include "Fall Through Rates" this was June 2006:

Fall through rates increase

Disappointingly the number of transactions that fell through after a sale had been agreed rose in June to 9.15 per cent from 8.6 per cent in May. This increase is a natural consequence of the greater availability of housing stock seen in May. Independent research conducted on behalf of the NAEA last month, into consumer opinion on the proposed Home Information Pack (HIP), highlighted that 60.4 per cent of failed sales were due to either a broken chain or a higher offer from a competing buyer

Edited July 9, 2009 by Sybil13

[puppee]

Working lunch today:

Henry Prior, a "housing expert" says that an NAEA member reports that they have 47 sales backed up waiting for mortgage approvals.

Sort of adds weight to the argument that many make offers and actually cant get the finance.

I expect to see a good many of the recent SSTC's to become available again soon

perhaps people should only be allowed to put in offers if they are in a position to proceed : have a motgage approved , house already sold , or cash to avoid wasting time and money and if people need to sell because they can't afford to stay in the property they will be getting in deeper with each month they waste

[Brave New World]

Spot on Bloo Loo, as quick as the SSTC boards go up they come back down or disappear all together.

Pretend and extend doesn’t quite work for Joe Public!

[Sybil13]

Timm comment on the link here:

HPC Link

...provided by Rinoa that seemed to confirm less chains are breaking than at the start of the year, but again today in Reuters there seemed to be confirmation that chains are breaking down due to low valuations. As you know Nationwide and Halifax indices are based on pre-valuation approvals.

Mortgage availability remains a headache for the sector.

"The most significant concern to the industry remains the chronic shortage of mortgage supply exacerbated by the widespread practice of down valuations by surveyors representing mortgage lenders," said the company.

This was reported a few weeks ago also in the Times:

Realistic Valuations See Chains Break