Mar­ket may be on the up

Business Day - Home Front - - HOME FRONT -

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.

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