15,5% of sales due to financial pressure
WESTERN CAPE The latest Cape Metro FNB Property Barometer reveals that just over 15% of home sellers in the second quarter of this year sold because they were forced to do so by financial pressure or as a result of having their homes repossessed by a bank. The 15,5% was some 3% higher than the number selling to upgrade their homes in the same quarter — a complete reversal from the situation in 2006 to 2007. “While the 15,5% is a big improvement on the figures for all four quarters of last year (where financial pressure caused up to 33,5% of all sales) it is still a cause for serious concern,” said Lanice Steward, Managing Director of the estate agency Anne Porter Knight Frank. “This type of seller is often so desperate that they will take an unjustifiable drop in their price to get some cash in hand. This, of course, retards the growth in prices and the recovery of the housing sector generally.” The latest review, said Steward, also indicates that only 6% of sellers are doing so now due to relocation within SA. This, she said, indicates that new jobs are few and far between at the moment, “which is exactly what we would expect in a post-recession period”. Another interesting fact revealed by the FNB Property Barometer, is that the Western Cape’s level of debt in relation to disposal income is the highest in SA — and this, too, is undoubtedly holding back a revival in the housing market.