select
|

The road ahead for the real estate market

Housing demand still exceeds supply in most parts of SA and this situation is not expected to change for the rest of this year, despite the possibility of a further small rate rise.

That’s the word from Richard Gray, CEO of Harcourts Real Estate, who says, however, that the rate of house price growth is expected to moderate from the 8% to 9% achieved last year to around 6% in 2015, thanks to the negative effect that rising interest rates have on affordability.

“Having said that, though, the Reserve Bank has been saying for some time that it planned to start ‘normalising’ interest rates this year, and the anticipated effects have to some extent already been discounted by the market.

“July’s 25 percentage point increase, for example, will add only R162 a month to the repayment on a R1-million bond, and with so many buyers being so much better informed and better prepared now that they were a few years ago, they will counter that type of increase simply by buying a slightly less expensive property – or by paying a slightly bigger deposit.

“Serious sellers, on the other hand, are already showing more understanding of the buyer’s position and more willingness to negotiate.” 

In addition, he says, the banks currently have a strong appetite to lend and to compete for new home loan business. “So the overall picture is one of realistic sellers, consumers who have worked hard to be able to qualify for home loans by saving and reducing their debts, and banks who are keen to lend them money.


“Together with the slowing rate of new housing delivery, this will, we believe, underpin the market for the remainder of this year and well into in 2016, making this an excellent time to sell. As it is, our offices around the country are reporting that offers are still coming in quickly on well-priced properties.”

Turning to Harcourts specifically, Gray notes that following a 29% growth in sales volume in 2014, the group is currently tracking 20% growth for this year – which compares extremely well with the market average of 5% as calculated by property data company Lightstone.

“This speaks once again to the high calibre of our agency owners, principals and agents, and to our ability to keep attracting entrepreneurs and top-performing agents who always go the extra mile for our customers and consequently always achieve extraordinary results.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 22 Jun 2018
      The rental market in many Johannesburg suburbs has shown encouraging signs of revival this year but it remains a competitive market and landlords who best cater to their market’s needs will reap the healthiest returns.
    • 22 Jun 2018
      Home design is constantly evolving to reflect the changing needs of society. We look at some of the ways in which our use of space is changing.
    • 22 Jun 2018
      While estate agents can help the seller with correctly pricing the property and marketing a property to the right pool of potential buyers, at the end of the day it’s the impression that the property will make on buyers that counts the most.
    • 21 Jun 2018
      Anyone who’s ever been involved in a building project that’s gone wrong will appreciate the importance of adequate insurance cover in the construction industry.
    • 21 Jun 2018
      A recent news story about a blind tenant caught in a legal battle with his body corporate over letters and notices he was unable to read and consequently comply with has raised the question: what are the legal obligations for landlords with disabled tenants?
    • 21 Jun 2018
      A trend that’s taken the world by storm in recent years is that of hygge (pronounced: hue-guh), a Danish concept that is about creating intimacy, connecting with loved ones and taking pleasure in small, ordinary things.
    • 20 Jun 2018
      Buying or selling real estate isn’t as easy as it is portrayed sometimes, especially if there is a death of a party during the transaction which can make it awkward, tricky and inconvenient.
    • 20 Jun 2018
      With interest rates remaining at historic lows and banks continuing to compete for mortgage finance business, first-time buyers with funds at their disposal are currently well-placed to gain that initial foothold on the property ladder, particularly in the light of the slightly lower growth rates currently experienced in residential property values.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK