Record-breaking property sales collapses hit 2024, revealing potential reasons behind the trend.
In the tumultuous year of 2024, the property market faced unprecedented challenges, with a startling 28.8% of property sales collapsing, according to data from Quick Move Now. This figure represents a significant increase from the 23.6% recorded in 2020 during the pandemic and the 33% seen in the last three months of the year.
Quick Move Now, a firm that buys properties directly and re-sells them, transacts around 200-300 properties each year, providing a representative snapshot of the housing market. The company's data reveals that sellers accepting a higher offer was a factor that contributed to 14.5% of property sales falling through in 2024, while property chains breaking accounted for 7.3% of collapses. Buyers having a change of heart was the most common reason for sales falling through, accounting for 23.6% of collapses.
Beyond buyers pulling out due to property surveys and a change of heart, other common reasons for property sales falling through included rising home-related costs, economic uncertainty, and job market challenges. Higher home prices, property taxes, and homeowner’s insurance premiums discouraged many potential buyers, reducing market demand and leading to fewer completed sales. Economic volatility and elevated mortgage rates continued to deter buyers, with builder sentiment and confidence declining due to trade policy headwinds and economic jitters. Job market issues, including higher-than-average unemployment rates and slowing job growth in key regions, put downward pressure on home affordability and buyer confidence, resulting in stalled or failed transactions.
Seasonal factors and home condition issues also played roles in the high collapse rate. Poor home maintenance or listings timed outside peak buying seasons could decrease buyer interest, prolong time on market, and increase the chance of sales falling through near closing.
Richard Winter, of Richard Winter Surrey Property Search, noted that several buyers made knee-jerk reactions to offer and agree on sales. Sellers pulling out due to slow progress was a factor that contributed to 5.5% of property sales falling through in 2024. As time passed and the market became trickier, some deals fell through, especially after Rachel Reeves announced her Autumn Budget.
Zoopla's update at the end of 2024 revealed that buyers were agreeing on sales at 3.6% below asking prices, up from 3.2% in July. Lili Oliver, of Oliver Roth, a Bristol buying agent, advised clients to walk away if they changed their minds about a property.
Despite the challenging market conditions, some standout properties continued to attract attention. The most-viewed house of 2024 was a three-bed semi in Rhyl, Wales, with a fantastical Disney character-emblazoned interior. An irresistible West Country cottage and a magnificent Cumbrian country house were among the best country houses for sale this week.
Political upheaval and economic headwinds in 2024 made the property market challenging for buyers and sellers alike. However, with a better understanding of the factors contributing to property sales falling through, both parties can make more informed decisions and navigate the market more effectively in the coming years.
- In the challenging property market of 2024, where economic volatility and rising home-related costs were common, buyers reconsidering their decisions was a significant reason for 23.6% of property sales falling through.
- Beyond economic factors, seasonal factors and home condition issues also contributed to the high collapse rate in the property market. Poor home maintenance or listings timed outside peak buying seasons could decrease buyer interest, prolong time on market, and increase the chance of sales falling through near closing.
