Sellers take note, price growth slows and it takes longer to sell
Category Area Focus
While we remain upbeat about the year ahead, it is prudent to remind all sellers that the sluggish economy, Eskom energy crisis and rising costs continue to bear on the property market.
Where we had hoped for a strengthening of the economy and property market as the year progresses, we are unfortunately finding that our local Bergvliet property market has deteriorated somewhat since the start of the year.
Firstly the "time to sell" is being misread, and the average time that it now takes to sell a property is 4 months.
The January 2019 Propstats data shows an average list price of R4 300 000 and an average selling price of R3 900 000. However, February's shows a steep decline in the average list price to R3 500 000 and the average selling price to R3 200 000.
What does this mean for the market? It means that the focus remains on the asking prices as offers are still coming in at well below. The February Propstats data shows that sellers are getting on average 9.5% below their asking prices.
These trends are also in line with the latest FNB Price Index which shows that overall price growth has slowed to 3.7% year-on-year by February, down from 4% in January and the 3.9% average for 2018. The bank's valuers further rate demand as weakening while supply continues to strengthen. This deteriorating demand-supply balance, points to a market which is increasingly favourable for buyers.
While we believe that Bergvliet will continue to draw buyers looking for a good neighbourhood that offers access to good schools and amenities, buyers are now rather particular about the prices that they are prepared to pay. Bear in mind too that buyers have easy access to market data, and they are full apprised of the current market conditions.
Importantly though, we would recommend that, rather than work with an agent who will make unrealistic promises of a high price, to rather be selective of who they give their property mandate to. Be sure to entrust your most valuable asset to someone who has worked in your area for many years and who can give you the best advice.
Home is our Story and property our passion. Whether you are looking for assistance in selling, buying or leasing, be sure to make Seeff your first port of call. We offer local expertise and experience backed by a strong national brand.
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Author: Gina Meintjes
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