Mid-year update - people are still purchasing in Wynberg Upper, 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. Data from the banks show 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 a rate hike may only be introduced in the latter part, but it is expected to be fairly benign.
The latest CPI data shows an improvement to 4.6% in July, down from 4.9% in June and 5.2% in May. This 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.
Wynberg remains one of the most in-demand areas in the Southern Suburbs and activity continues unabated as buyers look to make the most of the favourable interest rate. Notably though, most sellers still need to drop their asking price by between 4% to 10% to conclude a sale.
The importance of going to market at the correct asking price can never be underestimated as it often makes the difference between receiving an offer or sending potential buyers to competing properties.
Buyers are able to view, and it is still a great time for sellers. A Sole Mandate is always the best way to go if you are serious about selling. Be sure though to choose a Seeff area agent to get the best advice and insight into the local market backed by over fifty years' experience in real estate.
______
Make sure to follow us on Facebook, Instagram, Twitter and LinkedIn for the latest tips and trends in the property industry, as well as some of the most relevant news about the area you call home.
Author: Gina Meintjes
