Major Trends Seen In The SA Real Estate Market?

What are the trends we are seeing in the SA real estate market?

A big trend you will see below, compliments of FNB is the concept of asset accumulation which is weighing down household wealth.  Are you planning to sell a property to move into something smaller?  Or are you planning on selling a 2nd or even a 3rd asset, let’s see what the trends in the SA real estate market are pointing to.    

We Already Know The Reasons Behind Why It’s Tough

In our very own personal lives, none of us needs to be reminded about why it’s so tough at the moment.  And we already all know from personal daily experiences how we got here.  We don’t need to be reminded and go into detail about our load-shedding blues, the increased costs of electricity, increasing rates and taxes, the rising interest rates and let’s not forget the current price of fuel.  We know all of that.  But let’s look at how this is all impacting the SA Real Estate Market.

What Are the Trends in the SA Real Estate Market?

  • There is a move away from asset accumulation.  Asset accumulation is weighing down household wealth. 
  • FNB defines household wealth as a household asset, minus outstanding household liabilities.  This means that what you have left after all the bills are paid, is less than it used to be.
  • Household savings are slowly if not already depleted.  Buffers for tough times are simply not what they always were.  Repairing a car tyre from a pot-hole run-in or an electric fence that needs a good service just deplete savings even more.  Just 2 examples of things that put a strain on household expenses. 
  • Weathering the tough times is, frankly harder than ever.
  • Selling off 2nd and 3rd properties is a growing trend.  The move away from asset accumulation for now.
  • Downscaling to something smaller is a growing trend.  Something smaller, something safer.  Something that costs less to maintain.
  • Upsize costs for alternative energy considerations.  It’s hard living without heaters, WiFi and power.  Cooking dinner and eating together takes planning which is also tough.
  • House price growth in SA is slower at 2% for 2023.  And, the bounce back may only happen in mid-2024.
  • Interest rate pressure will also continue until around mid-2024.

Is It Tough – Yes!

But there are steps you can take if you need to consider selling off a 2nd or even a 3rd property.  FNB calls it asset accumulation which may be hurting you more than you care to confirm.   I was speaking to a lady who represented a property owner in Sandton, yesterday.  Her brief from her boss was to get his 3rd property listed that afternoon and sold!  I was delighted to be of assistance but I did indicate that the pressure was actually hers.  I could get a top KW Select estate agent out to view the property and provide a valuation on the same day (yesterday) but she was unable to let us into the property on the same day to get ‘eyes’ on the property.  You see before a great Agent from KW Select can list a property we need to know and be in agreement with the price at which to sell the property.  KW Select always works on a win-win for all parties.  It’s how we work.  And it’s what makes us your brand of 1st choice, always.

Need A Property Valuation Done

When you have decided it’s time to downscale to something smaller or safer, or something less expensive to maintain.  Or if you are selling off some of your accumulated assets, Bank on the Best with KW Select.  Click here to request your property valuation.  A great estate agent in your area will reach out.  It’s that simple.  A process, a business and a team that just gets it right over and over again.  Oh, and KW Select will sell your property faster too.  It’s all in the technology that got us to the Top Spot in the global real estate market, and technology is what rewards us with a quicker sale too.  Click here to book your property valuation and we can and will assist anywhere in SA.  I am loathed to say it again but it’s the KW Technology that keeps us in first place.  First place = KW Select as your brand of choice when you sell a property.

Got some time to spare to read up more?