Home sellers around the country are facing one of the toughest times on record in the hunt to find a prospective buyer.
A popular online home acquisition firm has revealed that some 50% of active home sales are collapsing at the final stages of completion. The firm speculates numerous reasons as to why this could be happening, and cites difficulties in attaining competitively priced home loans coupled with last minute market jitters from buyers, as the root cause of the problem.
The firm has also suggested that large numbers of home sellers could be presented with something of a double blow in wake of the decline. First of all you will have a large percentage of fixed rate product home sellers, who are desperate to off load their current property in order to avoid the detriments of rising rates after their term comes to an end. Secondly, this same set of people will leave themselves additionally exposed, as any fees paid during the selling process will have been lost.
Commenting on the news, one industry expert suggested that buyers, especially FTB’s, have become extremely cautious towards committing to a new property. Although there is no definitive evidence that property values will fall, prospective buyers are not comfortable with taking that chance, preferring instead to delay their purchases whilst monitoring market performance over the next 6 to 12 months.
