15,5% of sales due to fi­nan­cial pres­sure

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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.

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