Agent sur­vey shows things are look­ing up

Weekend Argus (Saturday Edition) - - PROPERTY -

NEXT month’s first FNB Es­tate Agent Sur­vey for 2018 is ex­pected to see a “slightly better” mar­ket pic­ture emerge fol­low­ing “mod­est” agent ex­pec­ta­tions last year.

An im­proved eco­nomic growth rate, ac­com­pa­nied by the ex­pec­ta­tion of sta­ble in­ter­est rates, should also be sup­port­ive of mildly stronger house­hold sec­tor dis­pos­able in­come growth, says FNB’s John Loos.

This, in turn, should pro­vide more sup­port for hous­ing de­mand.

“Our own FNB house price in­dex may have also be­gun to show early signs of mar­ket strength­en­ing late in 2017.

“When we view it on a mon­thon-month ba­sis, af­ter ad­just­ing for sea­sonal fac­tors, we see that af­ter a lull in price growth in mid-2017, there was a late pick-up of sorts in De­cem­ber.

“It is too early to tell as to how sus­tain­able such a month-on­month lift is.”

Ac­cord­ing to Loos, agent ex­pec­ta­tions were mod­est last year, and sim­i­lar to what was re­flected in na­tional busi­ness con­fi­dence and con­sumer con­fi­dence in­dices.

The agents also clearly felt what he called the na­tional neg­a­tiv­ity in their day-to-day deal­ings in the hous­ing mar­ket last year.

“We be­lieve, how­ever, that the na­tional mood has changed sig­nif­i­cantly since the fourth quar­ter 2017 agent sur­vey, and that come the first quar­ter 2018 sur­vey – to take place in Fe­bru­ary – we may see a slightly better mar­ket pic­ture emerge.

“We say this be­cause, sub­se­quent to the sur­vey, we had a rul­ing party con­fer­ence in De­cem­ber at which there was a change in lead­er­ship.

“While it re­mains to be seen what such a change will mean pol­icy-wise for South Africa, if the strongly pos­i­tive re­ac­tion of the rand to this news is any­thing to go by, the na­tional mood ap­pears to have im­proved on the news,” he says.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.