Gosh, it is coming up to year-end, again. We are all rushing around like mad things. Christmas shopping lists are creeping up or they should be. We are dealing with continued load-shedding drama, increasing interest rates, textbooks, and stationery lists for next year, a silly season that has started and so much more.
So, where is the property market now?
Well according to The Property Wheel, there is some good news, in that:
- There have been around 350,000 national property transactions a year on average since 2008.
- Property transfer values are recovering and holding firm.
- The best performance has been in the mid to higher end of the property market.
- In 2022 house inflation forecasts suggest 3% to 3,6%. But our annual SA inflation rate is higher at 4,55% which is starting to hurt many households, financially.
- Of the R6 Trillion Rands worth of transactions Freehold properties account for 80,7% (volume) versus Sectional Titles at 12,2% (volume) and finally Estates at 7,1% (also volume of transactions).
- Sales transactional values rose sharply between 2001 and 2007.
Significant Movers
The most significant movement has been in properties of R1.5m+ accounts for 17% (volume) and 53% of the value. The R250,000 to R1,5m bracket makes up 45% of the sales volume and 33% of the sales value. Properties under R250,000 makes up 25% of the volume and just 4% of the sales or transfer value.
Battling on to close off 2022 some observations
- Property values are not quite meeting seller expectations. Properties have not quite as much as you think. When I say this though understand it is always in your agents’ best interest to sell for the very very very best price in the current market.
- The main reason behind properties standing on the market too long is that sellers are unrealistic about the price they will fetch when they sell. Agents are hard-pressed to find new properties to sell.
- In any given situation whether you find yourself retrenched there is always someone who needs to move because they are doing well. People always need a place to live be that scaling up or down.
- In a situation where you don’t sell a property in under 3-months, your property becomes stale. Your property stands. “Price it right and it sells overnight”, “But price it wrong and it takes long”. Folks the numbers don’t lie. If you need a free valuation that puts you squarely in the current market no pressure but price it right. Holding a property ransom for life is not fair and you will take longer to move on.
- The buyer pool after Covid helped to ravage our economy has seen plenty of Section 189’s being presented.
- Rentals are attractive especially with interest rates expected to go up, again!
- Many families have either left SA or have started the process. Semigration a not-so-new term is very much on the cards. But there is a twist, many families are coming back to Jhb. It seems that the world is starting to return to normal and many folks need to come back to work or so it seems. There is a term for this, reverse semigration which is seeing properties in the Northern Suburbs being snapped up by Vaalies returning.
Get in touch
If you need more info on the numbers let us know. Need to know how much time it takes to fall in love with a home just like yours, click here.
If you need a valuation done on a property anywhere in Randburg or elsewhere in SA, we can help. Give us a call on telephone number (064) 549-3123. Alternatively, drop us an e-mail at kwselect@kwsa.co.za. We have a vast network of almost 1,500 top Keller Williams agents at our fingertips who are all just dying for the opportunity to partner with you to sell and conclude your property transaction in record time.
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