select
|

Want to sell? Don’t get cold feet now

Rain or shine, cold weather or hot, the home sales just keep rolling on at the moment, with show days drawing flocks of prospective buyers and many properties attracting multiple offers.
 
“However,” says Berry Everitt, MD of the Chas Everitt International property group, “there is one big spanner in the works, and that is not having enough stock to sell.
 
“A quick survey among our agents recently revealed that in the most popular areas there has been a decline of up to 60% recently in saleable inventory – with the properties that were available having either been sold or withdrawn from the market.”
 
But, he says, those sellers who are backing out now in the belief that rising demand among buyers will enable them to get a much higher price six months or a year from now are making a big mistake.
 
Writing in the latest Property Signposts newsletter, Everitt says: “The truth is that while there is no shortage of buyers at the moment, and that well-priced properties are selling faster than at any time in the past five years, there are several factors in play now that mitigating against any really significant price increases in the coming months.
 
“And all of these have to do with the fact that interest rates are widely expected to rise over the next few months – the Reserve Bank’s most recent decision to keep them static notwithstanding.”
 
For one thing, he says, rising interest rates mean declining affordability, because they raise the proportion of income that prospective home buyers have to put towards paying off their debts. “This means they can only qualify for smaller home loans and become extremely value conscious and willing to negotiate hard to pay lower prices.”
 
Secondly, whenever interest rates start going up, the banks get more wary about granting credit, and more conservative in their valuations of the properties on which they are being asked to grant loans. “And once again, this translates into downward pressure on home prices, and a dwindling supply of buyers.”
 
Consequently, says Everitt, the best advice for home sellers at the moment is to stay in the market, take professional advice on pricing their properties correctly and make the most of the current still-strong demand to achieve a swift sale – “bearing in mind that this will put them in a good position to secure a loan for their own next purchase”.

Find the right estate agent to sell your property


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 28 Mar 2017
      During an economic decline, downsizing becomes more common when home owners find themselves increasingly cash-strapped and debt-ridden, but this is only one reason motivating South Africans to move to smaller homes.
    • 28 Mar 2017
      Does a Neighbourhood Watch have any effect on your property’s value? A definite yes is the answer from Jaco Faurie, co-owner of the RealNet franchise in Klerksdorp, who is also secretary of the Klerksdorp Neighbourhood Watch Forum and vice-chairman of the Doringkruin Neighbourhood Watch.
    • 28 Mar 2017
      Once an Offer to Purchase has been signed by both the buyer and seller, it immediately becomes a legal and binding Sale Agreement, warns Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 27 Mar 2017
      Designed by architect Justin Hervey from Raubenheimer Hervey and Associates, 3 Mona Crescent is marketed by Jawitz Properties, the development boasts the latest eco-friendly specifications and is selling on a plot and plan basis.
    • 27 Mar 2017
      Rondebosch in the heart of the Southern Suburbs academic belt continues to be bolstered by the semigrant market seeking family homes in the catchment area of many of Cape Town’s best schools.
    • 27 Mar 2017
      The mortgage clause in some Offer to Purchase (OTP) or Agreement of Sale documents can be confusing, and home buyers and sellers must be sure before they sign these documents that they are not committing themselves to the transaction under unacceptable conditions.
    • 24 Mar 2017
      Many 25 to 35-year-old millennials would love to buy their own homes – but don’t have the earnings, steady jobs or credit records needed to qualify for home loans and so have no choice but to keep renting.
    • 23 Mar 2017
      A home is the biggest financial asset most South Africans will ever possess, but what happens to that home when the owner passes away?
        
    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