One of the key factors driving demand for both sales and rentals in many areas is semigration. The sustained influx of people to various areas, not just the Cape, but also to other economic hubs such as the major metros of Gauteng and KZN, and many other towns across the country continue to be an added boost for the market.
Additionally, the interest rate cuts this year have provided further impetus driving higher volumes in many areas. As a result, properties in the more active areas are often selling faster, and achieving better prices. While overall, the market is still falling a bit short of the volumes that we would like to see, largely due to broader economic impacts, the market is showing strong resilience.
Stock levels are depleting due to higher buyer activity while sellers are achieving greater success in many areas. We have also seen a sustained uptick in the average price growth this year, and for the first time in recent years, both house prices and rent increases are slightly ahead of the inflation rate for the first half of this year. According to FNB, house prices increased by 3.7% in July while inflation stood at 3%.
While the market remains diverse with some areas seeing growth while others remain stagnant with lower price growth, Seeff continues to assess the market as healthy and resilient, packed with plenty of opportunities. Homeowners are finally seeing more positive capital appreciation, while sellers in the more active markets are achieving good prices. Landlords are seeing increased rental income which has boosted buy-to-let investments.
Many of our Seeff branches are now reporting stock shortages, particularly in the more popular price bands across both the sales and rentals markets. This presents a compelling opportunity for sellers and investors to capitalise on opportunities in the market. Correctly priced properties are seeing the most success in the current market.
That said, what works in a coastal town may not apply in a bustling metropolitan suburb. The key to navigating this complexity and making informed decisions is to partner with a local property expert with area-specific insight and a track record of selling success.
We open thousands of doors to new property aspirations annually. Our Seeff agents represent the best in the industry, and are equipped with the knowledge, skills, and tech to help you find the right property for your specific needs. Feel free to visit our website, www.seeff.com, to find your nearest Seeff branch.
Samuel Seeff
Chairman of the Seeff Property Group
