The biggest indicator that a market is shifting from a seller’s market to a buyer’s market is the relationship between stock levels and buyer activity. When properties start sitting on the market for longer, enquiry volumes decline, and see more frequent price reductions before offers are achieved, it usually signals that leverage is beginning to shift towards the buyers.
According to Quay 1 International Realty in a strong seller’s market, well-priced homes tend to attract immediate traction, multiple interested parties, and stronger negotiation positions for sellers. Once buyers have more choice and begin negotiating harder on price and terms, you can feel the market starting to rebalance.
It's also important to pay close attention to:
- Average days on market
- Number of competing listings entering the market
- Ratio of asking price vs achieved selling price
- Attendance at show days and second viewing activity
- Bond approval trends and affordability pressure linked to interest rates
Shifting tides, the property market signals sellers cannot afford to ignore
South Africa’s residential property market may still appear active in many areas, but estate agents are increasingly warning that conditions are becoming more balanced as buyers gain negotiating power in parts of the country.
According to Antonie Goosen, principal and founder of Meridian Realty, one of the biggest mistakes sellers make is relying on outdated assumptions about market strength instead of paying attention to the real metrics driving buyer behaviour.
Goosen says many homeowners still believe they are operating in a seller’s market simply because properties sold quickly a year or two ago, but the underlying indicators have changed significantly in certain price bands and regions. “The market does not shift overnight. It happens gradually, and the agents who pay attention to the data can see the change long before the average seller notices it".
According to Goosen, one of the clearest indicators is the average number of days a property spends on the market. When homes start taking longer to sell consistently across an area or price category, it is often the first sign that buyers are becoming more cautious and selective. “In a strong seller’s market, well priced homes may sell within days or a few weeks. When that stretches to two or three months, especially for quality stock, it tells you demand is softening,” he says.
Another major indicator is the gap between asking prices and final selling prices. He says sellers often focus on advertised prices rather than what buyers are actually willing to pay. “When we start seeing larger negotiations between listing price and final transfer price, it usually means buyers know they have more leverage. That discount gap is a very important metric," he says.
He says buyer enquiry levels also provide valuable insight into changing market conditions. A listing that would previously have generated dozens of calls and viewings may suddenly attract far less activity. “Serious buyer activity tells you a lot about confidence in the market. If viewing numbers decline, online engagement drops, and qualified enquiries slow down, it usually means buyers are becoming more hesitant".
Stock levels also play a critical role.
According to Goosen, rising inventory is one of the strongest indicators that the balance of power may be shifting. “When more properties come onto the market than buyers are willing to absorb, competition increases between sellers. Buyers suddenly have more choice and can negotiate harder".
Interest rate pressure and affordability also influence the transition between market cycles. He says higher monthly repayments often reduce urgency among buyers, particularly in the middle and upper price segments. “Increased borrowing costs immediately affect affordability. Buyers become more price sensitive, and emotional purchasing decisions reduce. That changes the entire dynamic of negotiations".
Goosen says another important signal is how quickly sellers are forced to reduce prices after listing. “When you see frequent price reductions within the first few weeks of a property being listed, it usually indicates that sellers initially overestimated demand.” However, he warns against treating the national property market as a single uniform environment. One suburb can still favour sellers while another nearby area becomes buyer friendly. Different price bands can also behave completely differently at the same time".
He says the most experienced agents focus on hyper local trends rather than national headlines alone. “Real estate is incredibly local. You need to understand what is happening street by street, suburb by suburb, and price category by price category.”
He believes realistic pricing becomes even more important as markets become balanced. “In a buyer’s market, overpricing is punished very quickly. Buyers have access to more information than ever before, and if a property appears overpriced relative to comparable sales, they simply move on," says Goosen.
He says sellers who adapt early generally achieve better outcomes than those who resist market realities. “The sellers who succeed are usually the ones who listen to market feedback early, price correctly from the beginning, and remain flexible enough to respond to changing conditions".
Goosen says understanding market signals is ultimately about reducing risk. “The sooner you recognise the market is shifting, the sooner you can adjust your strategy. Waiting too long often leads to extended time on the market, repeated price reductions, and weaker final offers".
Want all the latest property news and curated hot property listings sent directly to your inbox? Register for Property24’s Hot Properties, Lifestyle and Weekly Property Trends newsletters or follow us on Twitter, Instagram or Facebook.
