select
|

Housing market remains value and sentiment driven

As anticipated by many market commentators, against the backdrop of a still fragile economy and despite rising inflation, the Monetary Policy Committee today (19 September 2013) took the welcome decision to announce that the repo rate would again remain stable, says Dr Andrew Golding, CE of the Pam Golding Property group.

“From a Pam Golding Properties (PGP) perspective, our view is that while the housing market continues to show signs of gradual recovery, underpinned by positive sentiment among home buyers, the fact is there are a number of factors impacting on the residential property market, including access to finance.

“Although the economic recession caused house sales to slow and as a result less new homes to be built during that time, this has now created pent-up demand for homes and we are seeing an increasing take-up of available stock – both in terms of new and existing homes. An increasing trend is that in a number of high demand areas in all the major metropolitan areas of the country (across various price ranges, particularly up to R2 million or R3 million), stock shortages are being experienced. This trend is not necessarily across the board in every area but is being fuelled by desirability of location, access to schools, the workplace and a convenient and appealing way of life. In addition, buyers remain discerning and consider their options until the right property becomes available at the right price, resulting in a market which also remains very value-conscious.

“Other factors that are impacting on the current market include the fact that, as always, the housing market is very much driven by sentiment. Furthermore, mortgage funding continues to be less accessible than previously and even with interest rates at historical lows, the market has not responded as it would have in the past. Buyers need substantial deposits and are staying in their properties for longer periods of time in order to accumulate equity in their current bonds before looking to relocate – and they need to invest more of their own money in property. Having said that South Africans are gradually becoming accustomed to the new market conditions and new way of purchasing property, which augurs well for a sustained, steady, albeit slow recovery.

Concludes Dr Golding: “We remain optimistic regarding the remainder of 2013 and expect that interest rates will remain stable during this period. Nationally and as a group, PGP continues to achieve growth in sales across all regions, as well as in other countries in Africa.”



  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 17 Jan 2018
      While the current property market may still favour buyers, it doesn’t mean that they shouldn’t be well prepared before putting in an offer to purchase.
    • 17 Jan 2018
      Lightstone lists Blair Atholl as the most expensive suburb with an average house price of R11.2 million, followed by Westcliff (R10.5 million), Dunkeld (R9.3 million), Sandhurst (R9.1 million) and Inanda (R7.2 million).
    • 17 Jan 2018
      As it currently stands, there are four main ways in which a home can be bought in South Africa, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, who adds that deciding in which legal entity to purchase the property is not a decision that should be entered into lightly, as each has its pros and cons.
    • 16 Jan 2018
      The start of the new year is symbolic of new beginnings. A good time to take stock of one’s possessions as well as how necessary they actually are. However, seeing as the process may appear daunting – a plan goes a long way.
    • 16 Jan 2018
      The Western Cape is still in the throes of a severe drought and many households have to adjust the way they use and save water. It is a little more complicated in sectional title schemes, however, as it is not that easy to implement grey water systems for multiple users and it is also difficult to monitor water usage accurately if there are no separate water meters
    • 15 Jan 2018
      In ideal rental situations, when a lease is signed the tenant will stay for the full duration of his lease without any complications and the landlord will uphold his obligations, creating a win-win situation for tenant and landlord.
    • 15 Jan 2018
      The Atlantic Seaboard’s housing market has stoically withstood the brunt of the growing economic and political instability, consistently achieving double digit growth way above the national average, however, in 2017 South Africa’s most resilient market finally began to yield to the pressure.
    • 15 Jan 2018
      Sectional title insurance can be a little confusing and, as a new owner, you may be tempted to just assume your body corporate has you covered. While this may be the case, understanding the extent of your coverage and your personal liability is the only guaranteed way to protect yourself against potentially costly oversights.
        
    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