House price inflation holds steady at 5.03%

The latest Lightstone Report reveals that national year-on-year house price inflation is sitting at 5.03%, beating out the current CPI levels of 4.6%.

“Although we are facing challenging economic times, there has been high volumes of activity within the property market as many have had to reshuffle their lives to accommodate the changes COVID-19 has brought about. This explains why house prices continue to grow despite the slowdown in other economic activity across various other industries,” explains Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.  

Rather than slowing down, sales volumes have been at record-breaking highs this year. Year-to-date August, RE/MAX of Southern Africa recorded an increase of 54% in reported sales. While largely indicative of greater market trends, this can also be partly attributed to the exceptional growth in agent count the brand has experienced over the last year.

“In August, our number of sales associates grew by 13%. We now have over 2800 agents working under the RE/MAX brand, which only further entrenches us as the largest real estate group to operate within the Southern Africa landscape. What’s more, our Central Region (which is Gauteng & immediate surrounds) has gone over 1000 agents out of our total complement of 2815. Basically, if RE/MAX ‘Gauteng’ were an agency on its own, it would be in the top five in the country,” says Goslett.

Goslett attributes this growth in agent count to the security of belonging to a well-established and reputable brand. “With things being as uncertain as they are, many are seeking greater stability wherever they can. Having the support of the largest real estate brand behind you provides greater peace of mind and a sense that you are not in this alone,” he explains.   

Despite this exceptional growth, Goslett warns that the property market is unlikely to remain this active forever, especially considering the greater impact the pandemic continues to have on the broader economy.

“This is where partnering with a strong real estate brand really becomes important. Whether you are an agent, a buyer, or a seller – having a well-established brand by your side that can tap into the broadest network of global and local connections for advice, referrals, and support will provide you with the best possible chance of success within challenging market conditions,” he concludes.