Fall through rates have peaked and are now dropping again as the housing market ‘calms down’, according to ibuyer firm Upstix.

Phil Tennant, COO at Upstix, told The Neg fall through sales that were as high as 35% in some weeks at the end of last year, are now much lower.

He says the market has settled down, and buyers as well as sellers are now more realistic about house prices.

“The fall through rates have slowed down after they peaked at the end of last year. It speaks to the realignment of buyers’ and sellers’ expectations. There has been a dose of reality,” he says.

Upstix specialises in buying properties where a sale has been lost, and there is a danger a chain will collapse.

“We spend a lot of time making sure we buy properties we think will sell in a reasonable timeframe,” he explains.

The company’s ChainBreak tool provides an opportunity for each agent involved in a chain to contribute towards any shortfall in value a vendor experiences if Upstix becomes involved.

More selective

“From a demand perspective there isn’t half the amount there was at the beginning of last year.”

Tennant, who worked previously for Countrywide and Hamptons, goes on to say that both first-time buyers and buy-to-let investors are now being much more selective about which properties they purchase.

“There are far fewer first-time buyers and buy-to-let investors,” he says. “From a demand perspective there isn’t half the amount there was at the beginning of last year.”

For downsizers, this is certainly not the best time to consider selling, Tennant believes. “Last year would have been much better, and they probably need to wait a few months [for the market to pick up].”