The most recent FNB Property Barometer reports that nationally, residential demand in the first quarter of 2013 rose to its highest level since the first quarter of 2007, just before the market slumped. Along with this increase in demand a shortage of stock is materialising.
This home in Kloof offers three bedrooms, three bathrooms, double garage, staff accommodation and beautiful views over the gorge. It is on the market for R1.8 million - click here to view.
More telling are the Property Barometer figures that show that after demand slumped by -2.9 percent in the fourth quarter of 2012 to 4.1 percent, it then jumped 4.3 percent in the first quarter of 2013 to register an 8.6 percent increase year-on-year.
This report lends support to Wakefields Real Estate Agents reports since July 2012 of KwaZulu-Natal stock shortages of correctly priced property that, in some areas, has risen to critical proportions. This shortage initially experienced in affordable areas is spreading to more affluent suburbs.
Prices in some areas have already risen as a result and there are indications that this is becoming more widespread. If this trend continues it will be the end of the road for buyers hoping to find a bargain buy, says Myles Wakefield, CEO of Wakefields Real Estate.
Sellers of correctly priced properties are, in most cases, achieving their asking price and selling reasonably quickly. This means there is market activity and buyers are slowly realising that the market is moving from a buyers’ to a sellers’ market albeit price and area driven.
This home in Yellowwood Park offers five bedrooms, three bathrooms, a fully fitted kitchen, staff accommodation and garage. It is priced at R1.25 million - click here to view.
If this demand remains intact and strengthens, the time on the market will decrease further and there will be more pressure on prices to rise, says Wakefield. However, this is not a signal for people to overprice their property. Overpriced properties that don’t offer value for money continue to sit on the market for months.
Affordability and price remain important factors resulting in fairly clearly defined price brackets. The most popular segment of the market are homes priced under R1 million. In more affluent areas the popular price range is under R2 million, with properties priced at R1.5 million and R1.6 million selling best.
In the greater Malvern, there is enormous demand for properties between R750 000 and R1 million and correctly priced properties ‘fly out the window’.
Recently a property listed for R785 000 was sold within three days for R765 000.
This Durban North home offers three bedrooms, one bathroom, swimming pool, staff accommodation and double garage. It is on the market for R2.05 million - click here to view.
In Durban North where there is a serious shortage of well priced stock, it is the new stock that is selling and prices have moved up on average by 4.5 percent.
Wakefields’ Kloof branch reports that overall there is less stock. It is experiencing a shortage of well or correctly priced property in sectional title, gated living complexes around the R1 million to R1.4 million price range. Also, higher priced houses in the R2.5 million to R3.5 million price range are starting to sell for the first time in a long while.
In Yellowwood Park there is a shortage and a high demand for properties priced at R750 000 and R880 000, and in Montclair the demand is for sectional title simplexes and townhouses.
The 2013 FNB survey suggests that perhaps sellers have not yet accepted the need for realistic pricing. It notes that possibly seller optimism increases as demand is perceived to be improving, which in turn keeps prices ahead of demand.
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