select
|

FNB Estate Agent Survey - The Results

The recently conducted  FNB Estate Agent Survey asks estate agents their opinion regarding the property market and in the 1st Quarter of 2014 they report further residential activity improvement despite the rate increase earlier this year.

The survey was completed in February and a selection of agents from South Africa’s major metro regions were asked to take part.

The first question that was asked from these agents pertains to their perception of the residential property market activity in their areas on a scale of 1 -10, with 10 being the strongest level of activity.

The Residential Activity Indicator rose in the 1st Quarter from the previous quarter’s 6.27 to 6.76. This rise in the rating suggests that the gradual strengthening trend in the market through 2012 and 2013 is still intact early in 2014. This 1st Quarter activity rating is the highest since the 1st Quarter of 2005.

Agents also reported that along with the rising activity trends, they also an improvement in the balance between demand and supply in the 1st Quarter of 2104. 

John Loos, FNB’s Property Economist, writes that “This comes through in responses regarding stock constraints, average time of properties on the market, and those related to sellers having to drop their asking prices.”

There was a further rise in the percentage of agents citing stock constrains as a factor, which influences their near term expectations. This figure rose to 18,5% from the prior quarter’s 16%. This rise comes after an already considerable rise in 2012’s stock constraint percentage over that of 2011.

One indicator of where the market is in terms of seller pricing realism, or otherwise put the balance between demand and supply at prevailing price levels, is the estimated average time that properties remain on the market prior to sale. From a 4th quarter 2013 estimate of 15 weeks and 1 day, the estimated average time on the market in the 1st quarter 2014 survey declined to 13 weeks and 6 days. This is the lowest estimated average time on the market since the 1st quarter of 2010, and continues a gradual broad declining trend in the average time on the market ever since a 19 weeks and 1 day high at the beginning of 2011.

Along with agents pointing to a decline in the average time on the market in the 1st quarter survey, which is often seen as a good indicator of seller pricing realism in the market, they also estimated a further decline in sellers being required to drop their asking price to make a sale, another important indicator of pricing realism. They reported a slight decline in this percentage from 85% in the 4th quarter to 81%, although it must be said that this percentage remains far above the level of around 30% back in early-2004.

When asking agents for the factors influencing their near term expectations, “interest rates” were by far the most common factor as one would expect with the 1st quarter survey having been completed just after the January “surprise” interest rate hike, the 1st of the expected rate hiking phase of the interest rate cycle.  Interest rates were generally perceived as a negative factor. This was followed by 26% of agents citing stock issues as a factor, with the majority (18%) citing stock shortages (vs too much stock). The 3rd key factor on the list was “Economic Stress/General Pessimism”, which at 15% is now higher than the 11% citing “Consumer Positive Sentiment”.

Therefore, while agents have been experiencing good times, according to the survey, they seem to be no more than “cautiously optimistic” at best when providing their near term future expectations, and some negative factors have been creeping into their thinking of late.

Download the full report or download the data sheet


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 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.
    • 21 Feb 2018
      These days most buyers are using online property portals like Private Property when house hunting due to the convenience, up to date information and variety on offer. “The property portals have revolutionised the way buyers shop, but they do need to be cautious – viewing photos online is no replacement for viewing the property in person,” says Bruce Swain, CEO of Leapfrog Property Group.
    • 20 Feb 2018
      Owning a home is a milestone that most South Africans aspire to. Becoming a homeowner is a step towards growing personal wealth and owning an asset that appreciates in value over time, provided of course that the correct principles are applied during the buying stage of the process, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 20 Feb 2018
      The suburb of Greenstone in Johannesburg east came to be over the last two decades. “In the beginning, it was literally just a hill with not so much as a shopping centre,” says Michael Levy, Property Consultant at Jawitz Properties Bedfordview. Today it has plenty shopping facilities and is fully built, boasting high-density, upmarket housing and residential estates, though still has a few pockets poised for commercial development.
        
    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