Mid-year market update - people are purchasing in Claremont/Lynfrae, great news for sellers
Category Market Update
While not impervious to the impact of the Covid pandemic, lockdown restrictions and seasonality, the residential real estate market continues to be a positive story in the economy.
The latest market data shows that activity is still at the best levels in three years as buyers and sellers continue to take advantage of the favourable market conditions. Bank data shows that mortgage lending is now at the highest levels since 2007 while the deposit requirements is at the lowest making for splendid buying conditions.
The buoyant buyer activity has been great news for sellers who have also been able to take advantage of the market and move on to their next property story. Movement in the market also paves the way for new listings to come onto the market.
Further good news is that the interest rate is set to remain low for the remainder of this year with the possibility that should a rate hike be introduced in the latter part, it is likely to be fairly benign.
The latest CPI data also shows an improvement to 4.6% in July, down from 5.2% in May which is further good news for the interest rate, although it is still above the mid-point in the Reserve Bank's target range of 4%-6%.
Mid-year property market trends from FNB shows that liquidity in the market remains intact with activity still above pre-pandemic levels. After some acceleration in house prices during the latter part of 2020, the bank's House Price Index shows a slowdown in growth to 3.7% year-on-year, down from 4.2% in May as the initial "buyer frenzy" cools slightly.
The Southern Suburbs remains one of the most in-demand areas in the Cape Town metro with activity continuing unabated as buyers look to make the most of the favourable interest rate and buying conditions.
Buyers are able to view, and it is still a great time for sellers. The importance of going to market at the correct asking price though remains important and often makes the difference between receiving an offer or sending potential buyers to competing properties.
A Sole Mandate is always the best way to go if you are serious about selling. Be sure though to choose Seeff to get the best advice and insight into the local market backed by over fifty years' experience in real estate.
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Author: Gina Meintjes
