The end of the slump in the property market might be coming to an end according to some estate agents. This follows a sudden up-tick in show home visitors and buying interest since mid-August.
Samuel Seeff, chairman of Seeff Properties, shares this optimism, saying that the SA Reserve Bank’s decision to keep the interest rate on hold might be what triggered the improved sentiment.
Others say that there is no hope of a quick recovery with the high interest rates in place. Data released by Standard Bank shows that house price growth remains in negative territory with median prices down for the 6th consecutive month.
John Botha, Standard Bank’s economist, believes that disposable income and interest rates should turn the corner before thing will start looking up. He expects that to be well into next year.
Absa Home Loans senior also thinks that the residential property market might recover late next year when financial pressure has been taken off households.
The number of residential properties up for auction is also an indicator that the slump is far from over. Rael Levitt, chief executive of Alliance Group, stated that they will put 123 residential properties up for auction this month alone as oppose to last September’s 12.
This article is courtesy of Joan Muller (“Don’t get too excited yet” ,Property24, 20 October 2008).
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