Rondebosch market update and a few important pointers for sellers
Category Market Update
By now, you are well aware of the impact of the persistent weak economic climate on the property market, particularly as it manifests in a notable slow-down in price growth and weak buyer demand.
An important take-out thought is that it does not mean that there is no activity in the property market. While transactions are fewer and buyers are hesitant, we are still concluding excellent transactions.
An overview of sales recorded on Propstats for the January to August 2019 period shows that in the Rondebosch area, around 58 full title sales at an average selling price of almost R5,3 million have been concluded. 64% fall below R5m while six transactions were recorded above R10m ranging to a highest price of R13 million.
Properties spend about 95 days on average on the market, but this varies with some sales still concluded within a month. The average difference between asking and selling prices is recorded at 11%, but this also varies with a few still concluded at a 5% price differential and the odd sale at full asking price.
Generally, the consensus remains that the market will remain flat for the rest of the year. We highlight a few important pointers for sellers in this market as:
Choosing the right agent - at a time when the market is a challenge, it becomes especially important to partner with a local area expert who will give you the right advice, rather than waste your time with high price promises.
Sole mandate - it has been proven time and again that awarding a mandate to multiple agencies does not bring more buyers or better offers. Rather, awarding a sole mandate to the right agent has shown that it results in faster sales and higher offers.
Presentation matters - ensure your property is in the best possible condition and leave nothing to chance. In a market where buyers have access to a choice of properties, often within the same price range, it is vital that they perceive your property as offering good value for the price.
Pricing - increased stock levels means more competition for sellers which makes accurate pricing vital. Buyers use the property portals to compare properties of similar pricing and if your property is priced above similar properties, you risk being overlooked by serious buyers.
Considering offers - at a time when there are fewer buyers and more properties to compete with, it becomes important not to let a serious buyer slip through the cracks. Consider all offers and open the door to negotiation. A serious buyer will generally come back with a counteroffer.
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Author: Gina Meintjes
