Sell­ers wait longer

Re­sis­tance to drop­ping prices

Finweek English Edition - - News -

Fres­i­den­tial prop­erty barom­e­ter – a sur­vey of es­tate agents – found “a very no­tice­able” de­te­ri­o­ra­tion in the av­er­age time a prop­erty spends on the mar­ket be­fore be­ing sold. FNB prop­erty strate­gist John Loos says that fig­ure has in­creased from 14 weeks and six days in sec­ond quar­ter 2008 to 20 weeks and one day in the third. “That’s re­flec­tive of on­go­ing re­sis­tance of many sell­ers to drop­ping prices to achieve a sale,” Loos says.

Over­all, the prop­erty barom­e­ter re­flected a fur­ther de­te­ri­o­ra­tion in the mar­ket. The sur­vey was started in 2003 and in third quar­ter 2008 ac­tiv­ity lev­els dropped to a new record low of 4,1. That’s down from the 4,4 level recorded in the sec­ond quar­ter and cur­rently well be­low the near eight lev­els recorded back in 2004.

But looking for­ward, when agents were asked for their ex­pec­ta­tions re­gard­ing the fol­low­ing quar­ter, 48% said they ex­pected im­prove­ment up from the pre­vi­ous quar­ter as well as the same quar­ter a year ago. “It would ap­pear that the un­changed in­ter­est rate de­ci­sion was viewed in a very pos­i­tive light by agents,” Loos says.

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