select
|

Properties selling quicker, FNB survey finds

There has been a mild improvement in the residential property market, with the average time a property remains on the market before being sold improving to an estimated 15 weeks and six days in the third quarter from 17 weeks and four days in the previous quarter, according to the latest FNB estate agent survey.

But Clinton Martle, an FNB property leader sales strategist, stressed last week that 15 weeks and six days still meant a property remained on the market for an average of almost four months before it was sold, which was too long to represent a healthy market.

"Judging from the healthier market days prior to 2008, a level nearer to eight weeks on the market appears to be the benchmark for a 'healthy' market, so there remains some way to go," he said.

"One would not yet expect to see much price growth in real terms at this length of average time on the market."

The survey, released last week, also indicated a further decline in the percentage of sellers who had to drop their asking price to make a sale to 84 percent from 87 percent in the same period. This average price drop was unchanged at minus 10 percent from minus 13 percent at the end of 2011.

However, the year-on-year house price index revealed that house price growth slowed further to 5 percent last month from 5.3 percent in August, although the rate of change in the seasonally adjusted month-on-month index slowed to minus 0.2 percent last month from minus 0.43 percent in August.

Martle said this might be the start of the positive impact from the interest rate reduction in July.
The survey also suggested there was a small improvement in the balance between demand and supply in the residential market between the second and third quarters. Martle said this was something that was not only driven by demand slowing but also by the availability of stock for sale.

He said the third quarter survey was completed in August, which normally returned a seasonally weak result because it was undertaken during winter. But this year it was completed shortly after the surprise 0.5 percentage point interest rate cut by the Reserve Bank, and this small stimulus may have played a small positive role in the survey results.

However, Martle said the residential market still appeared to be unrealistically priced, as reflected in the average time properties were on the market before they were sold remaining close to four months.

Household indebtedness had resumed its deterioration in the first half of this year by rising to 76.3 percent in the second quarter. This was a key residential demand constraint.

(Business Report)


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 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.
    • 20 Jun 2018
      The average size of bond granted in SA has grown 7,7% in the past 12 months to R934 000, according to BetterBond, the country’s biggest bond originator.
    • 19 Jun 2018
      In the current market, letting out a property can be a good option as rental demand remains strong, especially in the northern suburbs of Johannesburg. This is according to Chris Renecle, MD of Renprop. However he says that before homeowners let their property out, there are five key points they should make sure are covered before they market the property for rent and sign any lease agreements.
    • 19 Jun 2018
      The Capetonian dream is to live by the ocean with the iconic mountain making an appearance somewhere in the horizon. But, that dream comes with a hefty price tag that many simply cannot afford. But, should you venture some kilometres out of the city centre, entirely new realms of beachside bliss await you …
    • 19 Jun 2018
      Douw Steyn, one of the richest men in the country, recently allowed a rare glimpse into his Fourways Palazzo when it was featured on the SABC lifestyle programme Top Billing - and it is beyond your wildest dreams!
    • 18 Jun 2018
      Many home sellers are motivated to appoint estate agents because they know that the agency will carry the costs of advertising and marketing their property.
    • 18 Jun 2018
      When a property is sold when it has a tenant in occupation, the questions often raised are: “What happens to the tenant if the landlord sells the property?”, and what rights the tenant will have with regards to cancelling the lease or enforcing it, says Sunell Afrika, rentals manager for SAProperty.com.
        
    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