Property News Trending

The SA Property Transfer Guide’s Property Clock, a graphic representation of the real-estate market, takes into account data such as interest rates, supply and demand cycles, finance availability, construction and rentals. Adjusted monthly, this quick overview of South Africa’s property market helps you make informed decisions.

 

MAY 2012: Knowledge Factory’s, SA Property Transfer Guide has kept its Property Clock unchanged this month at 21minutes to the hour. The Clock measures high-level national trends in the residential real-estate market. It retreated by five minutes in 2011 and has moved forward by one minute in March 2012.

Property Sector Analyst, Dieter Deppisch comments: “Riding into the second quarter of the year on the back of somewhat optimistic data may add an unexpected lightness to one’s step. FNB’s recent Estate Agent Survey came out with some mildly positive views of the residential property market. However, the happiness is tempered by the fact that Q1 is traditionally a strong period and affected by seasonality.

Some specific items of good news we noticed: (1) Sellers are a little more realistic in their pricing and estate agents reported that the number of sellers not achieving their asking price fell from 91% to 88%. (2) The average length of time it took to sell a property dropped from 17 weeks 6 days to 15 weeks 6 days. (3) The average concession sellers made on their asking price decreased from 13% to 11%. (4) A marginal drop in supply versus demand (5) OOBA reported a 49% y/y increase in the value of home loans approved in March.

While all of the aforementioned items are positive, do they bode well for the residential property market in general? That question can be answered only when one knows the following: (1) When will political pontificating translate into sustainable jobs (2) Will South Africa be able to accelerate its growth path beyond its current, mediocre 3% (3) Will effective measures be found for the frailties within SA’s largest trading partner – the Eurozone (4) How much risk appetite will our banks be prepared to swallow?

Notably we do not ask when interest rates will go up (or down). That’s because monetary policy has become largely reactive. This is clear when one tracks the repo rate and CPI over the past few years, particularly since the introduction of inflation targeting. Granted, the SARB maintains an eagle-eye on the contribution by exogenous factors to the rise in CPI, such as Brent crude and food prices.

Recently the SARB reported on trends with regard to real disposable household income, and it appears that the lower income groups may be faring worse than previously held. Indeed, it was also lower-priced homes (R300, 000-R500,000) that appeared to be doing better as a sector than their higher-priced brethren. Has the tide turned? Only time will tell.

For now interest rates are still low and growth of unsecured credit remains strong, increasing to 9,2 % y/y (from 7,9 % y/y). Economists forecast the repo rate rising by up to 200 basis points (2%) during 2013. If that is realised, it will certainly put a damper on home loans, affordability, debt-to-income ratios and the peripherals that drive the broader economy. Tough decisions in exciting times lie ahead!”

Tough decisions require unadulterated information. Knowledge Factory is committed to supplying sophisticated data to help buyers, sellers and property professionals make informed decisions.

Market characterised by:

Article Courtesy of Dieter Deppisch

Property Sector Analyst

Leave a Reply

The 3 Worst Reasons To Buy A Home
Avoid These Most Common Pitfalls When Buying Or Selling Property
Be Careful Of Sophisticated Property Scammers When Buying Property
4 Basic Scenarios That Bring On Buyer’s Remorse
Avoid These Debt Hazards To Keep Your Home
SA Property Market Remains Safe Haven Asset For Investors
What To Do (And NOT To Do) When Looking To Sell Your Home
How Do Your Pets Affect The Selling Of Your Property?
4 Important Questions To Answer Whether You’re Ready To Buy A Home
4 Minimum Insurance Considerations For Body Corporate
6 Quick Tips When Buying A Home In An Estate
How To Sell Luxury Real Estate
How Hiving Living Emerges As New Housing Trend
City Or Suburbs: Where Should You Buy A Home In South Africa?
Property Practitioners Bill – Why Should The Consumer Give A Hoot?
The 3 Worst Reasons To Buy A Home
Avoid These Most Common Pitfalls When Buying Or Selling Property
4 Home Buying Obstacles To Overcome
Be Careful Of Sophisticated Property Scammers When Buying Property
4 Basic Scenarios That Bring On Buyer’s Remorse
Applying For A Home Loan? Key Is A Good Credit Report
4 Important Questions To Answer Whether You’re Ready To Buy A Home
6 Quick Tips When Buying A Home In An Estate
City Or Suburbs: Where Should You Buy A Home In South Africa?
Property Practitioners Bill – Why Should The Consumer Give A Hoot?
4 Top Reasons To Buy a Home In The Summer
When Is The Right Time To Buy Property?
Make an Informed Decision When Buying a Fixer-Upper
10 Common Mistakes First-Time Home Buyers Make
8 Greatest Concerns Keeping Property Investors Awake
What To Do (And NOT To Do) When Looking To Sell Your Home
How Do Your Pets Affect The Selling Of Your Property?
How To Sell Luxury Real Estate
Property Practitioners Bill – Why Should The Consumer Give A Hoot?
Why A Good Sale Actually Starts With A Good Sale Agreement
What Are The Tax Implications Of Selling Your Primary Residence?
5 Unexpected Expenses When Selling Your Home
How To Get Ready To Sell Your Home In Spring
All That Twitters Is Not Sold
5 Expensive Mistakes Made By Home Sellers When Selling A Home
Does An Open Mandate Delay a Home Sale?
8 Tips On Selling an Empty House
Neglecting Home Maintenance Will Damage Sale Price
The Do’s And Dont’s of Selling Your Home
4 Clear Signs It’s Time To Sell Your Home
4 Minimum Insurance Considerations For Body Corporate
Looking For A Rental Property? Make Sure You Are Rental Ready!
Know The Lowdown On Letting Out Your Property
How Much Should You Spend On Rent A Month?
#SmartHomes: The No.1 Tenant Amenity Today Is Wi-Fi
Demand For Rental Properties Rising Due To Low Confidence Levels
What About Pet Ownership In Sectional Title Schemes?
Why Creditworthiness Is Just As Important For Tenants
Factors To Consider When Letting Out Property
New Landlords Need Experienced Agents
The Perils of Rising Consumer Debt For Landlords
First-Time Tenant? What You Need To Know
Average residential rental values on the increase
Is It Possible To Terminate A Lease Agreement Without Recourse?
New Generation Digs Now On The Rise
3 Helpful Tips For a Stress-Free Moving Day
Divorcing And Need To Sell? 3 Possible Options
5 Mistakes To Avoid When Relocating
7 Tips For Packing And Moving Quickly
Moving? Things To Think About!
Maximising Small Spaces
7 Tips To Help Your Children To Adapt To The Move
What To Do With Your Home When You Have To Relocate
Moving With Pets Can Be Tricky
Estate Agent Moving Tips
Telltale Signs You Need A New Home
Seven Signs You Need A New Nest
Über Wealthy On The Increase And On The Move
Applying For A Home Loan? Key Is A Good Credit Report
SA Property Market Remains Safe Haven Asset For Investors
What Are The Tax Implications Of Selling Your Primary Residence?
5 Unexpected Expenses When Selling Your Home
8 Greatest Concerns Keeping Property Investors Awake
Running Behind On Your Home Loan Repayments? Here’s What To Do!
5 Financial Tips To Stay Afloat As a First-Time Homeowner
First-Time Home Buyer? How To Avoid Tax And Get Up To 44% More Space
Repo Rate Cut: Encouraging News For Home Buyers
Is Investing In Property During The Recession Still A Good Idea?
4 Hot Tips For Investing In Student Accommodation
Make Your Bond Work For You
Energy-Saving Tips For Your Home This Winter
Costs To Consider When Investing In Property
Smaller Properties Yield Great Investments
5 Reasons You Should Work With a Real Estate Agent
Is Hosting Your Property On Airbnb Legal?
How To Protect Your Commercial Property Investment
Commercial property still important asset class for private buyers
Know The Risks Before Building Airbnb Castles In The Sky
Green Buildings Catching On In South Africa
Digital Disruption And The South African Commercial Real Estate Market
Can You Run A Business From A Sectional Title Home?
What’s Driving Change In The Commercial Property Sector?
5 Ways Commercial Property Space Planning Can Save You Money
Investing In Commercial Property an Attractive Option
3 Obvious Signs That It’s Time For Office Relocation
3 Things You Need To Know Before Buying Vacant Land
Price Correction In Commercial Property Market
South Africa: Evolution of Industrial Properties