FROM THE DESK OF THE MD
PUBLISHED 11 MAY 2018
If you’ve been planning a move or an upgrade to a bigger property, now would be a good time to list your current home for sale.
There are several reasons for this, the first being that the consumer confidence index has shown a big improvement in recent months (from -8 in the last quarter of 2017 to +26 in the first quarter of this year). This indicates that most households now have a much more positive view of the economy than they did last year, as well as a more positive view of their own financial circumstances and ability to afford major purchases such as a home.
And there has definitely been a shift in housing demand relative to supply since the start of the year, as confirmed in the latest statistics from FNB, which show that:
- The average listing time has fallen from 17 weeks and 2 days to 14 weeks and 1 day;
- In some metros, the average time that a home spends on the market before a sale has actually now dropped below 11 weeks
- The percentage of sellers being required to drop their asking price to make a sale has dropped from 95% to 91%; and
- The percentage by which these sellers are dropping their asking price has diminished from an average of 10% to 8,2%.
In addition, the latest figures from our preferred mortgage originator BetterBond show that its bond application approval rate is currently at 80% - its highest level since before the 2008/09 recession – thanks to an increased willingness on the part of banks to lend to home buyers, and an improvement in the financial circumstances of many would-be borrowers.
However, amid all this good news, it is important to note that there probably won’t be a flood of buyers knocking on your door and clamoring to pay whatever you ask. We are not in a seller’s market yet, and although they may be keen, prospective buyers remain very price conscious and conservative in their spending.
Consequently, sellers need to be equally moderate in their expectations and set realistic asking prices that will attract a high number of potential buyers as soon as the property is listed and thus increase their chances of concluding a satisfactory sale.
The best way to do this, as always, is to seek the advice of a qualified and experienced estate agent who can provide up-to-date information about sales and sale prices achieved in your area, and assist you to set an asking price that is aligned to your local market and will generate the most interest in your property.