Green shoots on the horizon... are you ready to sell?
Category Market Update
The news that the GDP growth rate lifted by 3.1% for the second quarter is certainly a positive boost for the economy and market. Already, we have seen that FNB has hinted that there may be some green shoots on the horizon.
FNB's latest Property Barometer shows that after weak house price growth in the first half of 2019, prices appear to be stabilising. At the same time demand is also improving as buyers adjust to the post-election climate and start looking to get back into the market, spurred by the attractive pricing, lower interest rate and increased competition between lenders.
The number of mortgage loans granted this year is also higher compared to the 2018-year and for the first time since mid-2011, mortgage advances has grown faster than the average house price growth.
Stock levels seems to remain steady despite the fact that some sellers are withdrawing their properties until the market turns.
The bank expects the market to continue recovering steadily. It also anticipates a further 25 basis points rate cut before the end of the year. It expects that the average house price growth rate will remain in the 3.5% range for this year and will improve to around 4% next year.
That said, the Cape Town metro has seen a notable slow-down in price growth to just 0,5%, largely due to the fact that it has come off a high base and was lagging some of the other regions. It now takes around 13,5 weeks on average to sell a property in the Cape. It is important to always bear in mind that these are citywide averages and each area has its own unique micro-market.
An important take out from the latest FNB data is that while the market remains busy and there is always a level of demand, properties are still taking longer to sell and asking prices remain under pressure.
It is important to always "listen" to the market. Ultimately, it is the market that will signal if a price is too high by simply overlooking the property or offers coming in at well below the asking prices.
If you are serious about selling, then be sure to choose the right agent who will give you the best advice in this market. Beware of selecting an agent based on a high price promise. Experience has shown that a local area specialist will sell properties faster and achieve higher prices.
An open mandate is also not going to sell your house faster or for a better price because no particular agent will be focusing on your property. A Sole Mandate is a contractual agreement and a proven tool for achieving the best results since the agent will focus their energy and marketing on your property.
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Author: Gina Meintjes
