Please note that you are using an outdated version of Internet Explorer which is not compatible with some elements of the site. We strongly urge you to update to a newer version for optimal browsing experience.

Why waiting to sell home won’t help you

20 Jul 2010
Potential sellers who are holding out for much better prices, will eventually be disappointed for two reasons.

Lanice Steward, managing director of Anne Porter Knight Frank (APKF), says although house prices are indeed showing good signs of recovery, buying and selling in the same market levels the playing field.

“I’m finding that some clients want to hang back about putting their properties up for sale in the belief that, if they wait another six to 12 months, they will get a far better price.

“While there is some truth in that idea, it should always be borne in mind that if you are selling to buy another home, the new property will almost inevitably also have increased in value. And if you are planning to upgrade, the gap between the price you get and what you will have to pay will in fact be bigger as conditions improve.”

For these reasons, said Steward, it is not advisable to delay the transaction.

“Sell now if you intend to re-buy in the same market has always been sound advice,” she said.

Steward says this also applies to retirement properties as units in retirement villages are often in short supply.

“I know of several couples who, having delayed their decision to move for a long time, are now on lists that could involve a five or six year wait before they actually gain admission.”

The second reason is that the real growth has already occurred.

Jacques du Toit, property economist at Absa, says the SA property market has seen strong price growth in the first half of 2010 and this growth is likely to taper off in the second part of the year.

“However, prices will probably rise by a fairly robust 10,5% during the course of 2010.”

He says the small segment of the housing market has recorded the biggest price rise, largely because affordability came under pressure in the second half of 2009 and into 2010.

In a previous statement on possible house price rises at the Cape, Steward said that she expects the increase to be in the region of 6% to 8% this year, i.e. ahead of the inflation rate for the first time in three years. – Eugene Brink

Readers' Comments Have a comment about this article? Email us now.

Print Print
Top Articles
Leading cities such as London and New York have been at the forefront of micro living trends - with a new offering coming to Gauteng's Hyde Park from 30 October via an online launch. 

It’s definitely not doom and gloom as prospective first-time buyers take a shine to property. Here's what the experts have to say.

ST trustees and HOA directors don't need to obtain the permission of owners to collect personal information needed for the “effective management” of those schemes, as long as that is all they do with it.

Loading

Your browser is out of date!

It looks like you are using an outdated version of Internet Explorer.

If you are using Internet Explorer 8 or higher, please verify that your Internet Explorer compatibility view settings are not enabled.

For the best browsing experience, update to the latest Version of Internet Explorer or try out Google Chrome or Mozilla Firefox.


Please contact our Property24 Support Team for further assistance. Tel. +27 (0)861 111 724