Property sales collapse at fastest rate since pandemic

Melissa Lawford
·2 min read
Property sales, mortgage rates, interest rates
Property sales, mortgage rates, interest rates

Property sales are falling through at the fastest rate since the Covid-19 housing market shut down because of soaring mortgage rates.

The share of agreed sales collapsing before completion jumped to 29.3pc in September, up from 27pc in August, according to TwentyCi, a data company.

This was the highest level recorded since April and May 2020, during the first Covid lockdown, when home moves were effectively banned. Collapsing sales are 16pc higher than in September 2019, before the pandemic began.

In the week ending October 2, fall-throughs jumped nationally by 7pc compared to the two weeks ending September 18, according to analysis by Lucian Cook, of Savills estate agents.

The number of unsold properties which had changed asking price also jumped 14.1pc. These changes will almost certainly be price cuts, Mr Cook said.

Markets panicked at the prospect of higher inflation, which has sent expectations for interest rates soaring.

In turn, this made fixed-rate mortgage deals almost impossible to price, which meant lenders withdrew almost half of all deals from the market.

They are now bringing them back slowly at much higher prices. In the two weeks since the mini-Budget, the average rate on a two-year fix has jumped from 4.74pc to 6.11pc – a 14-year high.

Mr Cook said, despite the number of collapsing sales, buyers had remained committed to their purchases in most cases.

This is because lenders are largely bound by contract to proceed with mortgage offers that are already in place. It is only buyers who had agreed sales but did not have offers in place who would have suddenly been left in the lurch and facing higher rates.

Buyers who have mortgage offers are highly motivated to press ahead before rate rises price them out of the market.

Mr Cook said: “Buyers already locked into a mortgage deal have been keen to proceed at much lower mortgage rates than are now available.”

But experts warned sellers are coming to terms with the fact that new buyers entering the market now will be paying much higher rates and will therefore have less money to spend.

“We have seen a much bigger increase in price adjustments to unsold stock. This reflects the fact that sellers have been ready to adjust their price expectations to reflect a higher interest rate environment and reduced buying power, irrespective of the stamp duty giveaway,” Mr Cook said.

  • Up next
  • Up next
  • Up next
  • Up next

Latest Stories

  • Strange celestial phenomenon: Atmosphere turns half white

    Residents of the Philippine island of Mindanao filmed a strange sight at the end of March. One half of the sky appeared white, the other blue. There was an optical phenomenon behind the two-tone appearance.

  • UPDATE 1-Tenet Healthcare, union coalition reach tentative deal

    A union coalition for Tenet Healthcare's workers reached a tentative labor deal with the hospital system that included across-the-board raises of 14% over three years for full and part-time workers, the union said on Friday. Labor unions across the United States have grown bolder in their demands in the last two years, pressing for higher wages and better benefits to combat a loss of spending power caused by inflation and the healthcare sector has emerged at the forefront of that trend. This is the second major agreement in the healthcare sector after Kaiser Permanente's healthcare workers in November voted to ratify a new contract with the hospital chain.

  • Birbalsingh tells Braverman to ‘take a hike’ for using her school as a ‘political football’

    Katharine Birbalsingh has taken a swipe at former Home Secretary Suella Braverman and accused her of using her school as a “political football”.

  • Teenager arrested for plotting mass shooting after manifesto revealed chilling plans to attack elementary school

    Police alerted by a friend who had been given access to Google Doc on planned shooting

  • Trump campaign announces 100,000 poll watchers and attorneys poised for election day

    Mr Trump tried to overturn the 2020 election citing baseless allegations of fraud

  • 'It was joy': Trapped B.C. orca calf eats seal meat, putting rescue on hold

    ZEBALLOS, B.C. — A rescue operation for an orca calf trapped in a remote tidal lagoon off Vancouver Island has been put on hold after it started eating seal meat thrown in the water for what is believed to be the first time. Ehattesaht First Nation Chief Simon John said the young killer whale swam to an area of the lagoon where members of the neighbouring Nuchatlaht First Nation tossed about 18 kilograms of seal meat into the water on Thursday evening. They witnessed her grabbing the chunks in i

  • Remembering Kelly Ann Fleming | Columbine 25 years

    In honor of the victims of Columbine on the occasion of 25 years since the tragedy, these are the inscriptions on each plaque provided by the Columbine Memorial Foundation. This is Kelly Ann Fleming’s tribute.

  • TLTI Briefs

    TLTI accepting applications for Community Improvement Plan The Township of Leeds and the Thousand Islands has announced that applications are now being accepted for the 2024 Community Improvement Plan. The plan offers grants for a total of five financial incentive programs. The goal is to enhance one’s business or property and contribute to the overall improvement of the community. The spring intake is open until May 31 at 4:30 p.m. A Community Improvement Plan (CIP) is a tool used by municipali

  • Liberal and NDP MPs lament departure of longtime Tory MP as Status of Women chair

    OTTAWA — Liberal and NDP MPs are lamenting the loss of the longtime Conservative chair of the parliamentary committee on the Status of Women, saying they hope the change doesn't hurt their ability to work together across party lines. Members of the committee said they were disappointed to learn that Karen Vecchio, lauded as a collaborator, would no longer be at the helm. Vecchio was first elected as chair in 2017 and has served in the role for years. Her time as committee chair ended Wednesday,

  • 3 ways companies are using sustainability technology: Expert

    Earth Day is right around the corner — Monday, April 22 — along with earnings for major recycling service companies like Waste Management (WM) and Republic Services (RSG). What can be learned from these companies as well as how much of an opportunity is there in sustainability? PA Consulting Sustainability & Regenerative Economy Expert Tony Perrotta joins Yahoo Finance to discuss market opportunities in sustainability, to which he believe there is $12 trillion worth of value, and how companies are utilizing recycling technologies already. Perrotta lays out the major ways companies are working to adopt sustainable methods: "First, better mechanical recycling practices are definitely growing and on the scene, leveraged by things like vision technology, robotics, and any conversation that includes technology obviously includes AI... Second, here in the US, advanced recycling technologies are coming on the scene in a major way, so the ability to either use a chemical process or a physical heat process to take hard-to-recycle materials and return them back to useable form. And then, finally, what we're most excited about is a move into novel and alternative materials altogether. In this realm, you've got things like seaweed, alginates, and plant-based fibers..." For more expert insight and the latest market action, click here to watch this full episode. This post was written by Nicholas Jacobino

  • Water levels across N.W.T. still mostly well below average — except for the Peel

    The N.W.T. saw lots of snowpack in the north this winter, but little in the south, according to the territory's spring water outlook released Thursday.The territory is in a multi-year drought, with dry conditions contributing to wildfire danger (last year's season was the worst on record), and record-low water levels sparking concern from hunters and others who use the territory's rivers and lakes.Water levels remain low in most of the territory — except for the Peel River basin, where both wate

  • Police to search Saskatoon landfill for woman missing since 2020

    SASKATOON — Police are planning to search a Saskatoon landfill for a woman who has been missing for almost four years. Mackenzie Lee Trottier was last seen in December 2020. Police say a substantial amount of data was collected late last year that identifies a specific area of the landfill that may contain evidence in the investigation. The search will cover an area of about 930 cubic metres at a depth of one metre. The search, which is to include dogs from the RCMP and Calgary police, is expect

  • Pegulas exploring sale in stake of Bills

    Terry Pegula, owner of the Buffalo Bills, is open to selling a minority stake of the team for the first time since taking ownership in 2014. Tim Graham was the first to report this and spoke with 7News some more on the topic.

  • Canucks set to face Predators in first playoff appearance since 2020

    VANCOUVER — Expectations for the Vancouver Canucks were not high heading into the season. Asked in September if he expected the team to make the playoffs, president of hockey operations Jim Rutherford hedged. “To be very to the point, the changes that we made, we have a playoff team if everything goes right,” he said. Things did go right. On Sunday, the Canucks will host their first home playoff game since 2015 when they kick off a first-round matchup against the Nashville Predators. Vancouver h

  • Maple Leafs, Bruins set to renew playoff hostilities: 'Here we go again'

    BOSTON — Auston Matthews has closed the book on his staggering regular season. The Maple Leafs sniper came one shot — one crossbar — short of becoming just the ninth player in NHL history to reach 70 goals in a campaign. Toronto's star attraction and his teammates limped over the finish line with four straight losses to close out the schedule in games that were largely insignificant as Matthews pushed for the milestone. The slate now wiped clean, the Leafs' attention is squarely on the playoffs

  • Nebraska's governor says he'll call lawmakers back to address tax relief

    OMAHA, Neb. (AP) — Nebraska Gov. Jim Pillen threatened from the beginning of this year's legislative session that he would call lawmakers back for a special session if they failed to pass a bill to significantly ease soaring property taxes. On the last day of the 60-day session Thursday, some lawmakers who helped torpedo an already anemic tax-shifting bill said they would welcome Pillen's special session. “We're not going to fix this bill today,” said Omaha Sen. Megan Hunt, the lone independent

  • Tesla recalling nearly 4,000 Cybertrucks because accelerator pedal can get stuck

    Tesla is recalling 3,878 of its 2024 Cybertrucks after it discovered that the accelerator pedal can become stuck, potentially causing the vehicle to accelerate unintentionally and increase the risk of a crash. The accelerator pedal pad may dislodge and become trapped by the interior trim, according to a filing with the National Highway Traffic Safety Administration. The recall involves model year 2024 Cybertrucks made between Nov. 13, 2023 and April 4, 2024, according to the NHTSA. As of Monday,

  • Kansas has a new anti-DEI law, but the governor has vetoed bills on abortion and even police dogs

    TOPEKA, Kan. (AP) — Kansas' Democratic governor on Friday vetoed proposed tax breaks for anti-abortion counseling centers while allowing restrictions on college diversity initiatives approved by the Republican-controlled Legislature to become law without her signature. Gov. Laura Kelly also vetoed a bill with bipartisan support to increase the penalties for killing a law enforcement dog or horse, a move that the GOP leader who pushed it called “political pettiness.” In addition, she rejected two

  • Major water users in southern Alberta agree to curb consumption in face of drought

    CALGARY — More than three dozen major water users in southern Alberta have agreed to voluntarily curb their consumption if there's a severe drought this spring or summer, but critics warn the deals won't do enough to address the issue. The province announced Friday that municipalities, irrigation districts and industry players have signed memorandums of understanding covering four sub-basins: the Red Deer River, the Bow River, the mainstem of the Oldman River and upper tributaries of the Oldman.

  • Here’s how Phish is using the Sphere's technology to give fans something completely different

    LAS VEGAS (AP) — Phish opened its four-night stay at the Sphere Thursday with a four-hour show that used the advanced technology in the $2.3 billion arena to deliver a show that even the band's most ardent fans have never experienced before. “We came in really wanting to do a show that was a great Phish show,” said co-creative director Abigail Rosen Holmes. She said the band and its creative team wanted to mix the Sphere’s technical capabilities and consider “what can we do for Phish that we may