Another great year for the Claremont/Lynfrae housing market
Category Market Update
The challenges notwithstanding, it has been another busy and successful property year for the Claremont/Lynfrae housing market.
After a strong year, we headed into the first few months of 2022 on a similar footing, albeit with the understanding that the rate hiking cycle was now in full force aiming to return the interest rate to its pre-pandemic level.
By the end of the first quarter, it, however, became evident that events in Eastern Europe and resulting global economic challenges would weigh on the economy and inflation, and accelerate the rate hiking cycle further.
After the latest hike, the interest rate is now at 10.5% which is just above the pre-pandemic level, but still within the 10-20 year average. The interest rate and favourable bank lending conditions are still positives for the market.
The Western Cape - Cape Town in particular - has benefited from the added demand from semigration and international buyers. It therefore looks set to end the year on a stronger footing compared to many other areas. The expectation is also that the Cape Town market should fare better compared to inland regions into next year.
At a local level, the Claremont/Lynfrae property market enjoyed another excellent year with full title home sales across the market for the year to end November amounting to R288,825,000 at an average selling price of just over R3.7 million.
Properties sold slightly faster this year, spending on average about 49 days on the market. Over 70% of sales were concluded above R3 million with a highest price achieved of R6.3 million by Seeff's Award-winning area specialist, Belinda Keys.
Belinda once again excelled, achieving the highest market share in the Claremont/Lynfrae area for full title home sales with a phenomenal 30 sales worth some R109 million including the R6.3 million record price noted above.
Belinda in fact concluded 3 sales in November alone, all sold within 1 day of listing. 2 of these sales at more than the asking price and the 3rd at the full asking price. This is a good sign that there is a demand for properties in the area, and as they list, they sell, provided they are correctly priced.
Overall, the market is still ahead of the 2019 pre-pandemic levels and is expected to remain stable into the first few months of 2023. That said, with global challenges continuing to weigh on the economy and inflation, it is possible that we may see another rate hike in the new year.
Nonetheless, the Claremont/Lynfrae market has strong underlying fundamentals. It has remained stable over the years with strong demand due to its location, access to top schools and the University of Cape Town and several other factors.
Home is our Story and property our passion. With the Claremont/Lynfrae market set to continue attracting buyer demand, there are still plenty of opportunities for sellers and always a shortage of good stock. If you would like to know more, please feel free to contact us at any time.
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Author: Gina Meintjes
