select
|

Measured growth for residential property this year

Herschel Jawitz, CE of Jawitz Properties believes that the residential property market will show ‘measured growth’ in 2013 despite a slow economy and continued pressure on consumers’ disposable income.

The low interest rate environment and slow growth in property prices make it a good time to buy from a value and affordability point of view. The pent up demand that has built since 2008, when the financial crisis hit, is now releasing into the market. Buyers have realised that the market has bottomed out. Those who want to buy and can afford it are now in the market. There are very few buyers sitting on the fence at the moment.

“This is especially evident in the large metro areas such as Johannesburg, Pretoria, Cape Town and Durban where buyer activity has increased noticeably,” says Jawitz. “In some of the sought after areas there are a shortage of homes for sale and buyers know this. Buyers are far more educated and are doing their homework in terms of price, location and value.  We are seeing buyers deliberating less and coming in with better offers than in previous years. Those sellers who are pricing their home in line with the market are getting better offers and selling faster.  So there are some positive signs.”

The increase in activity is also being felt in the smaller cities such as East London and PE but the coastal leisure market still has a way to go.  The supply of properties significantly outstrips demand and these conditions will persist for a while longer. Those who are selling in these markets, have to be ruthlessly realistic about the price, otherwise they are in for a long and frustrating process.
While the bank lending environment remains challenging, rate concessions have eased slightly and buyers are getting used to the new criteria in terms of deposits.

“We are continuing to see a gradual shift from a buyers’ market to something a little more balanced. Real growth in house prices above inflation may not be on the cards in 2013. Nevertheless sellers should see improved demand and buyers will need to re-look at the market from a price point of view if they want to secure their dream home,” he says.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 20 Apr 2018
      Whenever changes in the political ecosystem of a traditional property market create uncertainty, smart investors begin to look elsewhere for new opportunities. Property experts at IP Global have analysed the trends and crunched the numbers to find new markets to explore in Europe and the United States.
    • 20 Apr 2018
      Energy and water self-sufficiency are increasingly important factors in home buyers’ choice of property – especially in Cape Town where the extreme drought of the past few years has made municipal supply costly as well as uncertain.
    • 19 Apr 2018
      During the last decade, rampant development has progressively transformed Cape Town’s property landscape with densification being the order of the day, but there are still one or two hidden gems like Scarborough which have retained their original character, offering an inimitable lifestyle and an attractive investment opportunity.
    • 19 Apr 2018
      The rental market is a cut-throat sector of the real estate market that waits for nobody. According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, first-time renters need to be fully prepared before they even start the process of looking for a place to rent in order to avoid the disappointment of losing out on their ideal property.
    • 19 Apr 2018
      Choosing to buy your first home instead of continuing to rent is a big decision that will usually take some time to put into action, but the sooner you can save up a sizeable deposit, the closer you will be to reaching your goal.
    • 18 Apr 2018
      Selling your home is no small task and as you will quickly find out, there are a lot of misconceptions about the process. Gerhard van der Linde, Seeff's MD in Pretoria East lists the top 5 misconceptions when you are selling your home.
    • 18 Apr 2018
      The Cape Town municipality is now installing water-management devices at properties that have been non-compliant with the new level 5 water restrictions and there are talks of fines between R5,000 and R10,000 for households that use too much water.
    • 17 Apr 2018
      The recent interest rate cut has stoked the coals in the first-time buyer’s market. At least for the next two months until the next interest rate announcement, homeowners are guaranteed lower monthly instalments than in the previous quarter. But, is it wise to take out a 100% bond just to enter the property market while interest rates are low?
        
    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