We all actually know what is happening in the Randburg Property Market, and the property market in general. We are all going through the same or similar things at home. Rising costs, and rising earnings, but not at the rate of our inflation. The most recent FNB Property Barometer for June 2023 provides some valuable insights. Let’s consider the most relevant advice for the Randburg property market.
What Are The Major Headlines For The Randburg Property Market
The Randburg Property Market as with the property market is general is seeing some major trends.
- Interest rate hikes. These have left us all with less disposable income because the cost of servicing debt. Especially with home loans and cars which is now more expensive than before. More about that a little later.
- House price growth in Randburg shows a downward trend. This is further impacting how long it now takes to sell a property in Randburg.
- Further disruptions to the usual buying activity. Mostly due to load-shedding.
- Downscaling is preferred to upscaling. Smaller and more affordable is now considerably more important. Certainly more important than bigger and more expensive.
How Long Will It Take To Sell A Property, On Average, In Randburg?
The time it takes given the recent FNB Property Barometer Results for June 2023 is in fact 12 weeks and 1 day to be exact or 85 days. This is compared to 75 days at the beginning of 2023. Levels or time on the market in 2020 was 91 days.
What This Means If You Are Serious About Selling Property In Randburg?
- Buyer activity has slowed. Buyers are considering increasing costs very carefully. Major reasons all around are that debt servicing costs have increased significantly. So too have we seen the costs increase for general living expenses. And we do more with less in terms of load-shedding.
- Current household disposable income is stretched. This is stretching a buyer’s affordability. And buyer activity from enquiries is lower.
- House price growth is slower. In fact, house price growth has dropped to 1.9% (year-on-year). This is down from 2.1% (year-on-year) in April 2023. In 2022 the house price growth was pegged much higher, see the FNB Property Barometer Report for June 2023.
- What this means is if you were considering a sale earlier this year and you got an indication of what your property could fetch earlier this year or even last year, you may need to revise your expectations. Chances are you will just not get the price you had in mind at the start of your journey to sell in Randburg.
What Are Your Plans Now If You Are Very Serious About Selling In Randburg?
- Expect properties to take longer to sell at 85 days +.
- Expect fewer enquiries.
- Consider very carefully your asking price. Buyers have the upper hand. And in the current Randburg property market, buyers are spoiled for choice. Sellers may not fetch sales that our above what buyers will pay in the current market.
What Are The Main Reasons For Selling According To FNB?
As you can see, in the table below, and leveraged from the FNB Property Barometer for June 2023, the aggregate column is the one to consider closely. This outline shows in (1st) in the queue for selling is downscaling due to financial pressure at 24.1%. (2nd) in line is downscaling due to lifestage at 21.1% which is high. But if it’s time to consider this change, then you need to consider selling first before you buy your next property. Avoid ending up short on your net, which we are seeing more of. (3rd) is relocating, followed by (4th) which is a change in family structure. Coming in, in (5th) is upgrading which I find encouraging to say the least and this represents 10.6% of all property sales. (6th) Is Emigrating which was surprising, followed by (7th) which is moving to be closer to work or amenities. And finally, in (8th) place is moving for safety and security reasons.
Not All Doom And Gloom, though, BUT…
If it’s time to sell for the reasons stated above, the most important things to remember are:
- Your asking price needs to be realistic and in line with House Price Growth as indicated by FNB. I also am on record and it’s true when I say your property cannot be held ransom for life and what life throws at you.
- Also, expect fewer enquiries on your property and,
- It will take longer to sell your home at around 85 days +. Remember the FNB Property Barometer Report for June 2023 is the most recent report so there is a lag in the results noted above and the current market is even slower than June.
There Are Sales But, Levels Are Down
In no way are we saying that there are no sales, there really are sales being made, just fewer sales in the current economic climate. If your asking price is realistic and your timeline for sale expectations are aligned, you will make your sale. If you want R2,6m but you would consider an offer for R2.1m then now is the time to consider your asking price to ensure your property appeals to the active buyers in the market.
If It’s Time To Sell We Can Assist You
At KW Select the one thing we know how to do well is leverage. KW Select has brilliant technology and tools to assist with being able to leverage buyers more effectively. Holding onto buyers is now more important than ever as an agent. Negotiating is now more important than ever. And, if you are serious about selling and certainly to align with what FNB is citing as the most important reasons for selling Bank on the Best with KW Select. Book your property evaluation from an accredited property professional now, click here. If you need some advice then click here and we will get right back to you.
