Property Barometer - Estate Agent Survey by Segment

The latest First National Bank (FNB) Estate Agent Survey revealed that residential activity appeared the strongest in the lower income segment over the past four quarters. 

According to the survey for the last four quarters up to and including the 4th quarter of 2015, respondents from the lower income area segment of the residential market returned the highest estimated activity ratings for their areas. 

The high net worth area segment remained the segment with the weakest activity rating last year, but throughout 2015 that weakening activity spread to the upper and middle income area segments as well. 

Indicators of seller price realism or supply-demand pointed to the high net worth segment being the weakest.  

Asked about why they are expecting weakened activity levels, most agents in recent years pointed towards stock constraints and in 2015 these constraints appeared to become more acute as one went from the high end to the low end of the residential market. 

The lower income area segment came out as the strongest segment from a demand-supply balance it would seem. 

A noticeable feature of recent FNB Estate Agent Surveys by segment has been a broad decline in the percentage of sellers believed to be selling in order to upgrade to a better home. Such decline has taken place across all 4 of the area segments, although being most pronounced at the High Net Worth Area end to date.

In addition to a slower pace of upgrading to higher valued properties, the survey also points to a higher rate of selling in order to downscale due to “life stage” in 2015, which refers to sellers who no longer have the need for a “large or costly” home due to children having left home, or because they are ageing and the running of a large home becomes “a costly hassle”

Read the full report here 

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