Property sell reality-check

FOUR CHARTS: MARKET HAS BEEN FLAT – BUT WHY?

Emigration as a motive for selling has risen 7.8% of total selling by half 2018.

Alook at average time on market, secondary home ownership and emigration selling… It’s widely known that the residential property market has been flat in real terms over the past decade. But, FNB’s August House Price Index reveals a number of details and trends that aren’t as apparent, especially when looking at the data month-by-month.

He says: “The evidence suggests that asking prices, on average, have become less realistic in recent years”.

The survey shows that the estimated asking price drop increased from -8.2% in the first quarter to -9.2% in the second. Therefore “In the 2nd quarter of 2018, our key survey responses related to ‘price realism’ reflect an apparent quarterly deterioration in the balance between demand and supply of

homes”.

The average time of homes on the market is 114 days CHART 2

Houses are on the market, on average, for a lot longer. The current average, from the bank’s Estate Agent Survey, is 16 weeks and four days, “noticeably” higher than the 11 weeks and one day in early 2016. The current length of time is not too far off historical highs over the past decade.

Loos says the “former two have moved more or less sideways in recent years, but emigration-related selling has risen noticeably since 2013 on the back of weakening sentiment in South Africa’s often related long-term policy. From a low of 2% of total selling, the emigration motive has risen to 7.8% of total selling by the second quarter of 2018”.

Home loan market is more competitive

96 out of 100 sellers had to drop their asking price.