Excellent sales growth in KwaZulu-Natal

A recent article regarding property sales mentioned that according to deeds office figures, the number of home successfully transferred within the Durban region have fallen by more than 10% since 2014. 

According to preliminary data released by the national deeds office, the monthly average number of homes sold during the first six months of this year is around 6.2% lower than the monthly average during the same period in 2014.
Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett, says that it is interesting to note that the deeds office statistics show that nationally the highest drop in property sales activity has been in the Durban area, which is reported to have dropped by around 10.7% during the first half of this year. “What makes this very interesting from a brand perspective is that RE/MAX has in fact seen an increase in sales in the Durban region during this period,” says Goslett.
He adds that RE/MAX registered property sales in KwaZulu-Natal has seen a 27% year-on-year increase from January to June 2015. “During the first six months of 2014 the RE/MAX registered sales figures for KwaZulu-Natal were around R1.36 billion. This year registered sales for the first six months have increased up to R1.74 billion. Essentially what this means is that while the overall property pie may be getting smaller, RE/MAX now has a larger slice,” says Goslett.
Although economists agree that the market has flattened somewhat, RE/MAX along with a few of the other larger real estate brands, are still forging ahead and showing increases in their sales figures. Nationally RE/MAX of Southern Africa has reported a 24% growth in sales figures in the first two quarters of this year. “While property market conditions have been reasonably flat so far this year, RE/MAX has continued to show excellent growth in sales. This can be attributed to the fact that the brand’s agent numbers have grown significantly, with the current number of RE/MAX agents now higher than the number of agents within the brand during the height of the property boom. Additionally, each of these agents are averaging more transactions than they did in the boom years,” says Goslett.
He notes that with the increased cost of living, it has become a lot tougher for consumers and it is not surprising that many potential homebuyers are waiting a while longer to get into the market. However, many still value homeownership and aspire to becoming homeowners in the near future. “Although financial constraints have forced many consumers to wait until their mid-thirties before purchasing a property, the rate of bond approvals has increased, as well as the average approved bond size. The average purchase price of a home sold by RE/MAX during the first five months of 2015 was around R1.17million. That said, it is highly unlikely that we will see any major deviations from the current buying patterns in the months ahead, with expected interest rate hikes on the horizon, as well as further increases in food and electricity prices on the cards,” says Goslett.
He concludes by saying that while the increasing cost of living will continue to place financial pressure on the majority of consumers, purchasing a home can still be a reality for those who work towards their homeownership goals by budgeting carefully, paying down debt and saving as much as possible.

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