While it’s been a buyer’s market over the last few years, estate agent Jawitz Properties believe the power is now back in the seller’s hands. “The market is slowly recovering from a price point of view,” said director of Jawitz Properties, Francois Venter, adding that while demand is up, supply is still tight as sellers are still holding on to their properties to get a better price.
The 50 basis point interest rate cut is also set to create an environment where the seller will have more power. The rate cut has now made loans more affordable meaning buyers will be able to lend more and afford bigger properties. “This will give first time buyers a chance to get a foothold on the property ladder. It will also enable buyers in general to qualify for larger bonds, which will give sellers the opportunity to achieve higher prices,” added Venter.
Jawitz said the Western Cape stats are showing that the power is now in the seller’s hands, pointing out that they are holding onto their homes for an average of 20 weeks as opposed to the national average of 17 weeks in order to get the right price for their homes.
Some are certainly achieving their goals. Propstats figures show that the Western Cape’s Atlantic Seaboard has enjoyed the most sales activity this year, with over 200 homes sold in the under-R3 million price bracket. The runner up enjoying marginal sales activity higher than that of the first six months is the Western Seaboard, where 56 more units were sold than last year, followed by Constantiaberg, Hout Bay and the South Eastern suburbs.
The luxury market continues to enjoy activity, particularly on the Atlantic Seaboard, with 10 more homes sold over the R10 million mark compared to this time last year. Overall, Venter believes that sales are steady and feels confident in the results found in the metropolitan areas of Cape Town. “In 2011, there was just over R10 billion in total property sales, and at present we are on a running total of just over R5 billion, so we are on track.”