select
|

South African homes market now in “new normal” mode

While the latest interest rate increase may well take some gloss off the process, the South African residential property market will nevertheless continue to settle into  a “new normal” mode that is more realistic and more sustainable,” says luxury homes marketer Ronald Ennik.

“Lets face it, the halcyon days of 2005/6 (before the mortgage origination business collapsed) were never normal, and are unlikely to be repeated,” adds the founder and CEO of Gauteng-based Ennik Estates.

“Also unlikely to be seen again is the prolonged laager mentality that kept the bulk of buyers and sellers out of the market since 2008,” he adds.

“Prior to the rate increase, we were seeing a steady trickle back into the market of the dammed-up demand of past years.  Show house attendances have been better than they were six years ago, and more and more noteworthy sales have been coming through – at prices not seen for a long time.

“I believe that this process will largely discount the interest rate increase and continue on its path,” says Ennik. 

“Also increasingly evident now – certainly at Ennik Estates – is the welcome return of the classic sole mandate, which ensures that it is buyers, and not estate agents, who compete on a property.

“Furthermore, after being in virtual mortgage-granting shutdown since 2008, banks have their heads back above the parapet and are now far more consistent and predictable in their home finance decision making – which is a stabilising influence,” says Ennik. 

“All indications are that this gentle improvement in market conditions will continue – albeit at a slightly slower pace – particularly if the 2014 general election comes and goes smoothly and there are no unpleasant surprises on the socio-economic and political front,” he concludes. 

Use our draw-a-search to find your dream property


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 23 Feb 2018
      RE/MAX Property Associates’ Table View Office, which services property buyers and sellers along the Table Bay coastline and surrounds, has recently sold a home in Woodbridge Island for R11 million – the highest price paid for any home in the sought-after security complex.
    • 23 Feb 2018
      Choosing to invest in an overseas property can be daunting. But as more and more investors recognise the value of a diversified portfolio that includes property outside of their own country of residence, international property investment is growing in popularity.
    • 23 Feb 2018
      The positive change in South Africa’s political landscape is paving the way for an upswing in the local property market.
    • 22 Feb 2018
      An excellent credit score is one of the most priceless assets a potential home buyer can have. This tool has the power to secure favorable mortgage and refinancing rate, influencing everything from the size of the loan repayment to the interest rate on the home loan.
    • 22 Feb 2018
      What do you do if you love your home’s location and the area, but the home no longer fits your growing family’s needs? Do you stay and renovate your existing home or find a home that meets your developing criteria?
    • 22 Feb 2018
      While every owner wants to sell their property at the best possible price, overpricing a home can be the kiss of death for a sale.
    • 21 Feb 2018
      Given the hand they were dealt, government has performed a delicate balancing act which it is hoped will serve to reignite confidence in investment in South Africa, regain our global credibility and satisfy the credit ratings agencies, says Dr Andrew Golding, chief executive of the Pam Golding Property group.
    • 21 Feb 2018
      The real estate mantra, ‘location, location, location’ remains a strong market influence regardless of the prevailing economy, with suburbs like Rondebosch enjoying the buffering benefit of being ideally situated.
        
    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