Guiding consumers since 2009

Experts say selling prices are unrealistic

By Staff Writer

Home sellers who don't want to lower their asking price will struggle to make a sale since the debt-ridden South African public will continue to avoid buying high-priced houses. This is according to First National Bank's (FNB's) property analytics department.

According to FNB housing specialist, John Loos, the residential property market is jampacked with homes which are struggling to sell.

"Asking prices are still too high given the weak level of residential demand," said FNB housing specialist John Loos.

He said surveys of estate agents for the review point to an unrealistically priced market.

The report revealed that the average time of a house on the market is 15 weeks and four days, which is almost double the eight-week time period from 2005 and 2006.

"There is a lack of realism in the market," said Loos. FNB estimates that 81% of sellers had to lower their asking price to make a sale in the third quarter, compared to 30% in 2004, which recorded the lowest average fall in selling price.

The estimated average drop in asking price was 12% for the third quarter of 2010.

Loos said that the household's sector's lack of interest might result in lower house prices which is good news for those looking to invest in property but bad news for home owners who will be forced to sell at a possible loss.

"Indications are that the supply of existing property is strong, with high levels of financial stress-related selling. Indications are also that residential demand is currently weakening. That leaves a price decline as seemingly the logical outcome," he said.

"We retain the expectation of average price decline for 2011 as a whole," said Loos.

Recent Articles

Featured The bank took money from my account – is this allowed?

You’ve just deposited money into your account and suddenly you see a notification from your bank. Money has been deducted from your account to pay the outstanding debt that you have with the bank. Is this allowed?

How much does it cost to draft a will?

Having a Will allows you to determine who inherits your property when you die. If you die intestate, the government will determine how to distribute your assets. Many people die intestate because they don’t know how to draft a will or are intimidated by the costs of drafting one.

Is your home correctly priced for the current market?

The property market is typically in either one of two phases, a buyers’ market or a sellers’ market. According to real estate experts, we are currently in a buyer’s market. For this reason, it is important as a seller to correctly price your house to ensure interested buyers and a valuable sale in the end.

Fuel rewards programme – how to fill up on petrol and points

South Africa’s volatile economy has often meant that factors like the fuel price bear the brunt. This year alone the country’s fuel price has fluctuated by between R1.50 to almost R3, which has put increasing pressure on motorists. That said, many of the bigger South African brands have provided some relief by way of fuel rewards programmes.

Deals

Wax On Wax Off Wednesdays at Rouge Day Spa

Price: From R50
When: Wednesdays
Where: Cape Town

Aarya Restaurant Christmas Lunch Special

Price: R425
When: 25 December 2019
Where: Johannesburg

Da Vinci’s Tantalising Tuesday Pizza Special

Price: Available on request
When: Tuesdays
Where: Cape Town