Selling and struggling? Seeff offers hope for sellers as summer brings energy to the property market
Every day, despite the high-interest rate and the less-than-rosy economic forecast, life and business carry on. Deals are struck as people continue with their regular property buying and selling activities. Interestingly, a peek into the deeds office data reveals that the bulk of these transactions are happening within the R1.5 million to R2 million price range.
If you're considering selling your property, rest assured there's always potential in every market. Interest rates may be slightly higher than we had hoped, but the current stagnation in house price growth means buyers are out there, actively looking for good value and ready to negotiate.
Furthermore, it's encouraging to note that banks are supporting the property market. Mortgage lending conditions are currently the most favourable they've been since the 2008 market slump, which translates to a larger pool of potential buyers able to secure the financing they need. This is good news for sellers, as it increases the chances of a successful and timely sale.
The Current State of the Property Market
Downsizing seems to be the current trend across the country, as we’re seeing house price inflation ease to just about 3.82% year-on-year. Homes priced below R1.5 million are not just the most popular on the market, but they're also where you're likely to see your property's value grow the most.
On the flip side, if you're selling a property priced over R3 million, be prepared for a bit of a wait, as these higher-end homes are now trailing behind the average market growth rate.
Looking at the regional differences, it’s clear that coastal properties, especially those in the Western Cape, have a bit of an edge over those inland, thanks largely to the continuous inflow of residents moving closer to the coast. However, in places like Gauteng, the increase in property values is quite modest, hovering around just 1.05%.
So, if you're selling in these areas, setting realistic expectations and perhaps being a bit more flexible during negotiations might be the key to a successful sale.
Three Tips to Sell Your Home
In a slower market, a 'wait and see' approach can be costly for sellers. Seeff recommends that you adopt a proactive approach and work with experienced property professionals to secure a successful sale. Here are several additional tips:
- Price Accurately. The importance of setting the right price from the start can't be overstated. With buyers looking for more room to negotiate, an overpriced property can be a major turn-off. You don't want to miss out on a potential buyer due to an unrealistic price tag.
- Re-evaluate. If your property has been on the market for some time without success, it might be time for a reassessment. Often, the reason is the price, particularly if there are similar properties in your area that are more competitively priced.
- Create a Selling Strategy. Partner with a Property Practitioner who has a proven track record of selling properties like yours in the local area. Additionally, it may be wise to grant a sole mandate; this often leads to quicker sales and better prices.
Seeff data shows that properties under sole mandates generally outperform the market averages in both speed of sale and final sale price.
The good news is that summer often brings energy to the property market. Are you considering selling? Contact Seeff for guidance to sell your home in the current market.
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