Market may be on the up
MOVEMENT A recent FNB estate agent survey indicates that many agents are seeing positive signs of market recovery. According to the report, the property market is doing better overall, with the Residential Demand Activity Indicator showing a solid increase from the previous quarter’s 5.89, to 6.57. This is the highest level since the first quarter of 2007, which was just prior to the big slump in the residential property market.
Agents are also indicating that fewer people are opting to downscale due to financial pressure whereas they indicate many lower-income owners are selling to upgrade (accounting for 20% of all sales from Q4 in 2012 until Q1 2013).
The report reveals that more expensive properties are still on the market for longer periods than lower priced homes and that there still seems to be a better supply/demand ratio for these properties at present.
It is comparatively easier to get a bond now than it was two years ago, although buyers still need to have their ducks in a row to obtain a mortgage.
While the South African Reserve Bank decided to keep the repo rate at 5% recently, indicators are the historically low rate will be raised, possibly by early 2015.