select
|

RE/MAX winter sales volumes show solid increase

Property sales are expected to rise as we move into the warmer seasons, says Adrian Goslett, CEO of RE/MAX of Southern Africa, who explains that the winter season normally brings with it cold weather and a general slowdown in the property market, however Goslett says that RE/MAX of Southern Africa posted remarkable winter sales figures in 2012.

Essentially, seasonality refers to the change in sales volumes and prices during the same calendar period when compared on a year-to-year basis. Very often certain seasons reveal a similar pattern or direction in the sales figure numbers. Goslett says that this is generally caused by factors that occur on a regular basis during those calendar periods such as changes in weather or school terms and holidays.

According to Goslett there are a few reasons why some seasons reflect higher sales volumes than others. One factor is that families looking to relocate will generally only move once the school is complete, allowing children to start in a new school at the beginning of the year. Spring also brings an increase in activity as students going to university in the new year look for accommodation, and those who have completed their last year of study move away. “With many people on holiday during December, the seasonal increase in activity doesn’t slow, it simply shifts focus to the coastal regions,” notes Goslett.

Understanding the impact of seasonal change on the property market can be an advantage to buyers and sellers, helping them to make more informed decisions. For example, sellers considering taking a property off the market just before the summer holidays could miss a window of sales opportunity given the upswing in interest during this time. On the other side of the coin, buyers may also find better deals if they are buying outside of the seasonally high demand periods, especially when looking to purchase property in coastal regions.

However, Goslett points out that over the last four years, comparing RE/MAX of Southern Africa year-on year statistics, winter period sales increased by 32.54% from 2009 to 2010. They stayed approximately level to the 2010 figures during 2011, and then increased by a further 22% from 2011 to 2012. When compared with winter sales during 2009, the 2012 figures are 47.21% higher, proving a remarkable increase of activity in the market over the past four winter seasons.

“While the overall trend has been remarkably positive during the first quarter of this year, with all regions across the country showing an overall increase of 11% in house sales, the regional winter sales statistics speak for themselves.” Goslett notes that from 2009 to 2012, Limpopo winter sales figures have increased by 60.82%, Gauteng by 58.86%, Eastern Cape by 53.42%, North West by 47.67%, Northern Cape by 46.06%, Free State by 39.29%, Western Cape by 38.19% and KwaZulu-Natal by 38.52%.

“Despite influences of seasonality and other market factors, it is essential for buyers and sellers to maintain a long-term perspective when it comes to the immediate state of a specific property sector. While seasons may have their impact on the market, property continues to perform well as a wealth-building asset class over the long term,” Goslett concludes.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 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.
    • 18 Jun 2018
      Sellers are often caught off-guard by the expenses incurred in the selling of a property. Just like there is no such thing as a free lunch, there is also no such thing as selling your property without incurring at least some costs.
    • 15 Jun 2018
      The second quarter of 2018 has proven to be the turning point for Midrand’s real estate market, especially the upper end which started to waver towards the end of a tumultuous 2017 with a notable drop in both sales and average selling prices.
    • 15 Jun 2018
      According to data recently released by FNB, the average age of a South African home buyer has increased from 38 to 44 this year. In an attempt to help first-time buyers enter the market sooner, Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, walks us through the steps of saving for your first home.
    • 15 Jun 2018
      Putting your house on the market can be a stressful process. There are so many decisions to make that will impact how quickly your house is sold and for how much you can sell it for. It’s a serious money game where you can’t afford to make the wrong decision.
    • 14 Jun 2018
      The word tourist describes someone who is visiting South Africa for a limited time and is probably not going to buy a property here – so why is the tourism industry so important to the real estate sector?
    • 14 Jun 2018
      Serengeti Estates has entrenched its status as one of Johannesburg’s most desirable addresses for a spectrum of homeowners with its launch of The Signature Residences, a new cluster village.
        
    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