Middle-aged buyers are most active in the market

RE/MAX survey results highlight that affordability still plays a strong role in the ability of consumers to acquire property

Almost half of all buyers of residential property between 1 January 2012 and 1 March 2012 handled by RE/MAX of Southern Africa agents, have, on average, been aged between 35 and 50 years old. This is one of the key findings of the inaugural RE/MAX survey conducted in March among the country’s leading RE/MAX offices.

These figures support the prediction that Generation X, which refers to adults between the ages of 31 and 45, will lead the local property market to recovery.  Peter Gilmour, Chairman of RE/MAX of Southern Africa, says that it is clear that a more positive sentiment has returned to the market, especially among professionals who can afford to take advantage of the current market conditions.

“People who fall into the Generation X population category are generally well established in their careers, and are at a financial stage in their lives where they are looking to build up their investment portfolio,” says Gilmour.  He says that these potential property buyers are most likely to decide that now is a good time to purchase a property, given their level of affordability and the current favourable market conditions for buyers.

It is interesting to note however, that a significant number of younger people are also purchasing property, with 24,2% of buyers falling into the 20-35 year old age category, according to respondents to the RE/MAX survey.

First time buyers

Survey respondents indicated that first time buyers made up an average of 20% of all property transactions in the first two months of the year. Gilmour says that there is definitely a more positive sentiment in the market with more first-time buyers purchasing property due to more affordable pricing as well as the relaxation of lending criteria by many of the banks.

The role of technology in real estate is growing

Another clear indicator from the survey is that while the internet is playing an increasing role in connecting serious buyers to serious sellers, relationships between buyers and sellers and their agents remain paramount. Survey respondents said that around 40% of buyers came to them through online listings or the internet, while around 25% came from referrals.  “As more and more people gain access to internet facilities, online property listings will play an increasingly bigger role in the property sale process. These statistics also show that while technology undoubtedly plays an important role in the business of buying and selling property, personal interaction remains a vital element as referrals are the second largest method of attracting buyers and sellers,” says Gilmour.

Show days

Show days continue to be an important part of the property sale process in that they provide potential buyers with an opportunity to get a good sense and feel of a property they may be interested in and compare similar properties. Of the RE/MAX offices surveyed, 61% say that attendance at any given show day held between 1 January and 1 March 2012 averaged 5 or less visitors, while 34% indicated that show days attracted an average of between 5 and 10 visitors.

Overall the findings of the survey indicate that affordability is still playing a key role in the sale of residential real estate. “The ratio of household debt to disposable income has proved to be the biggest stumbling block facing those who are trying to raise finance for a property,” says Gilmour. “Those who have money set aside for a deposit and who can show the affordability required by financial institutions in order to qualify for a bond are finding it easier to buy the house of their choice and are taking advantage of the good deals currently available.”

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 19 Feb 2018
      Possibly one of the biggest sources of contention between landlords and tenants surrounds the rental deposit. “Most tenants rely on getting their rental deposits back when moving, so that they can use it to pay a deposit on their new home. Having it withheld or even having large amounts deducted can lead to a lot of distress,” explains Bruce Swain, CEO of Leapfrog Property Group.
    • 19 Feb 2018
      Situated approximately halfway between Johannesburg and Pretoria, Midrand was established in 1981 and forms part of the City of Johannesburg Metropolitan Municipality. It has become one of the major business hubs in the country with major pharmaceutical, textile, telecommunication and motoring giants situated within its boundaries.
    • 19 Feb 2018
      The PayProp Rental Index Annual Review of 2017 shows that the rental market suffered from much volatility during the year. It kicked off with rental growth spiking in January with weighted year-on-year growth (YoY) growth peaking at 8.3% before dropping to 6.34% in July, dipping down to less than 5% in November and then experiencing a slight uptick at 5.75% in December.
    • 19 Feb 2018
      While most homes in cluster complexes, estates and other gated communities come with at least one garage or carport, residents would often like additional permanent parking or storage areas for things like trailers, bikes, boats and caravans.
    • 16 Feb 2018
      Whether you own a property in a sectional title complex or are looking to invest in one, the financial standing of the body corporate is the single most important thing that can affect your investment or your buying decision.
    • 15 Feb 2018
      One positive consequence of the financial crash in 2008 was the rise in consumerism, especially in the property market, where buyers have steadily become more knowledgeable and more value conscious.
    • 15 Feb 2018
      While most homeowners will take the agent’s commission into consideration when they are trying to determine what the will get out from the sale of their property, many often forget to factor in the other costs involved in a home sale, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 14 Feb 2018
      The forecast for the national rental market in 2018 remains a mixed bag of good news and bad news. Although rentals are expected to rise slowly as the challenges of home affordability and tighter lending criteria tighten their grip, it’s a double-edged sword as the market also will come under increasing pressure from factors like declining disposable income levels.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us