Due to an unprecedented influx of first-time buyers, the over-supply of homes on the market in 2013 has now virtually resulted in a shortage of middle income homes for 2014.
This positive activity trend indicates the volume of qualified buyers in the market currently and thereby provides a natural boost for the residential property market. The general consensus by bank economists is that there will be a continued month-on-month increase in the selling price of homes for the duration of 2014. One of the reasons for this is that the demand for properties below the R1-million mark is the highest and therefore this optimistic outlook on the property market should continue through 2014.
It is also clear that the banks are granting more home loans on a month to month basis, an encouraging fact that is heartening for every sales advisor across South Africa.
According to John Loos of FNB: “Recently, our FNB Estate Agent Survey pointed to the lower income and price areas of the residential property market as having the strongest fundamentals underpinning them. These fundamentals include stronger activity ratings and more noticeable declines in the average time that a property remains on the market prior to getting sold.” Loos further stated that the 4th quarter of 2013 saw a resumption of residential activity improvement after the previous quarter's slight decline. As affirmed by Riaan van Deventer, Head of Real Estate at Engel & Völkers Southern Africa, “This is an encouraging sign to prospective buyers that this would be the ideal timing for purchasing your home or to add to your property portfolio.”
