Opportunities for sellers as property market remains steady
Category Property Tips
As we approach the mid-year mark, we are pleased to note that the local property market remains active. This, despite the interest rate hiking cycle which is now firmly in motion as the Reserve Bank looks to normalise the rate and counter the rising inflation.
On the upside, the GDP expansion of 1,9% in the first quarter, which was also the second successive quarter of growth, has taken the economy back to pre-pandemic levels.
That said, the rising inflation to 6.5% in May (from 5.9% in April) will no doubt keep pressure on the Reserve Bank in regard to the interest rate. The economy is also expected to come under some pressure in the second quarter due to rising fuel and food prices among various other factors.
Nonetheless, for the property market, the interest rate, while rising, remains an advantage as it is still below the pre-pandemic level. It continues to serve as an inducement for buyers and a positive factor for the market.
This is further amplified by the fact that the banks are still keen to lend, and often on more favourable terms compared to what we have seen over the last decade. Bank approval rates are still much faster while deposit requirements are at the lowest level since 2008.
Activity across the Southern Suburbs property market remain favourable for both buyers and sellers. Year on year activity remains steady and there are still plenty of opportunities in the market.
While the market below R2 million remains the most active, we are seeing activity across the price bands and across the area, but each area is obviously different in terms of what is happening in the local market.
The message for buyers is that it is still a great time to purchase and there is still excellent value in the market. In some areas it seems that sellers are still pricing above the market, and we would caution that sellers should rather liaise with an experienced local area agent from Seeff to ensure you do not price too high and miss out on finding a potential buyer.
With some much information available about the market and everybody having 24/7 internet access, sellers should be mindful that buyers generally tend to know the market and are not prepared to pay over market value.
It is always important to use actual sales as a guideline when setting asking prices rather than looking at what is on the market.
Success in property requires a combination of skills and systems. With over five decades as a market leader Seeff once again showed its strength by successfully navigating the challenges of the Covid pandemic, excelling for our customers and setting new benchmarks.
As we look ahead to the remainder of the year, we remind you that Home is our Story and property our passion. By choosing Seeff, you get the benefit of superior service and systems. Please feel free to contact us at any time whatever your property needs, or if you just want to chat about what your property might sell for in this market.
______
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
