Mid-year update - people are still purchasing sectional title property, 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 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.
FNB's mid-year property market trends from FNB shows that After some acceleration in house prices during the latter part of 2020, growth has again slowed to 3.7% (from 4.2% in May) as the initial "buyer frenzy" cools slightly.
That said, liquidity in the market remains intact and 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 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%.
From a local market perspective, the sectional title property across the Southern Suburbs and Constantiaberg area continues to see high demand for well-priced units with sellers on average achieving about 93%-94% of their asking price and more depending on the price band and condition of the property.
The market remains active, but 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 Seeff to ensure you get the best advice and insight into the local market.
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Author: Gina Meintjes
