HomeBid breaks down the property sales trends in South Africa.
Have you put up that “For Sale” sign, and now you’re wondering how long it’s going to be outside your house for? Well, HomeBid gives us an idea of just how long it might take before your house is snapped up, depending on where in SA you live.
FNB’s John Loos, Household and Property Sector Strategist, has released the bank’s findings about the current tempo of the residential market in South Africa during the second quarter of 2017.
It’s taking 2 weeks longer to sell a home in South Africa – the average time is now 15 weeks and 4 days compared to 13 weeks and 4 days last quarter.
Gauteng is averaging 12 weeks to sell a home, with Tshwane taking the least time at 9.57 weeks and Johannesburg 12.86 weeks.
The coastal metros of Cape Town, eThekwini and Nelson Mandela Bay are seeing 16 weeks on average to sell a home. Although eThekwini is taking some 21 weeks, Cape Town has seen their average time on the market go to 18 weeks and 4 days compared to 13 weeks and 6 days in the previous quarter.
HomeBid’s understanding of this is that Cape Town employees’ remuneration levels are below that of Johannesburg and the rapidly rising home prices in Cape Town caused by semi-gration and foreigners are putting a constraint on affordability for Cape Town employees.
According to the FNB information, some 92% of sellers in South Africa have reduced their home prices by 6.8%, on average, during the second quarter, due to the reduced demand for homes.
In terms of any supply constraints of homes coming onto the market for sale, only Cape Town saw a shortage in certain areas and a small constraint was registered in certain Johannesburg areas with no supply constraint in Tshwane.
Sellers must be realistic in the current marketplace and buyers have a choice of homes to view and to select as their next homes. For now, this position looks to continue for the foreseeable future.