Property market buoyancy remains resilient despite tough economy
Category News
While the economy is under enormous pressure, the aggressive interest rate cuts this year to the lowest level in over forty years, has been an excellent boost for the property market.
Activity across the Hout Bay and Llandudno area has been buoyant, especially at the mid-market price ranges as buyers look to capitalise on the historically low borrowing costs coupled with low property prices when compared to previous years. The recent decision to keep the interest rate unchanged and with no rate hikes on the immediate horizon should continue to support the good activity in the market.
Where analysts had expected significant price declines following the hard Covid-19 Lockdown, the buoyant activity has resulted in prices holding firmly and even ticking up by a total market average of 2.8% y/y in August, from 1.8% in July according to the FNB Property Barometer.
The bank also reports that properties are currently selling at some of the fastest rates in recent years, being within 11 weeks on average compared to 14 weeks in the second quarter. This is of course always area dependent as each area would differ in terms of price growth and the time that it takes to sell.
The positive market sentiment is mirrored in our areas, especially in the price band between R2 million to R6 million where well-priced properties are moving quickly as buyers look to take advantage of the low interest rate. Sellers are also taking advantage of the opportunity to upgrade to larger properties.
Seeff's market share for the June to August period is 31.37% of all sales, and 41.7% for August alone. We have seen excellent activity and are even seeing stock shortages emerging in some areas and price bands.
The rental market also remains active and our rental team continue working with landlords and tenants to ensure that properties are occupied and that losses as a result of the significant economic consequences of the lockdown regulations are minimised.
While we are still in uncertain times and the full economic effect of the lockdown is still unfolding, the property market continues to show its resilience. That said, FNB cautioned that while current data supports a "V" shaped recovery, there could well be more of a "W" shaped recovery ahead. This means that the market may again taper down after the initial exuberance before heading back into recovery mode.
Sellers and buyers should therefore take advantage of the current market conditions. Home is our Story and property our passion. Seeff offers a proud sales history and we have weathered many market fluctuations.
The market is currently very active, so feel free to contact us via email, mobile or WhatsApp if you are thinking of selling or just to discuss your next property move.
Yours in Property
Stephan Cross
Sales Manager - Seeff Hout Bay & Llandudno
Author: Seeff
