WAKEFIELDS RECORD MONTHS
Category Residential Property News
There’s so much happening out there…but meantime, in here, in Kwazulu-Natal, Wakefields has experienced record months in some branches, with impressive sales figures. What does this say about the property market?
Listen to this.
Three branches of Wakefields – Berea, Gateway and Cotswold Downs - had their best month ever this August. Yes, that’s right, record figures since the inception of those branches. Not only that, but at the end of August, the entire Wakefields group recorded a significant 20 percent increase in figures over the same six month period last year.
With Wakefields’ 31 branches across Kwazulu-Natal, that 20 percent increase can be said to paint a picture of what’s currently happening in property across the province.
What do record figures and increased sales volumes mean? In reality, we know that last year was a particularly poor one, but this year, 2018, contrary to the general perception out there, South Africans are continuing to buy and sell homes. There’ll always be numerous local and global reasons why property sales and purchases fluctuate, but one thing seems clear in Kwazulu-Natal at the moment: successful sellers are those who are listening to expert advice when pricing their properties. Bottom line, more sellers are pricing their properties correctly. Market-related prices are key. With ‘length of time on the market’ as one of the telling signs of the state of any property market, making a home more appealing price-wise will usually reduce the selling time, and avoid buyer fatigue of the property.
It’s a solid fact that more home loans are being granted today than have been in the past year or so, when banks were extremely cautious about lending. Data shows that the bank conversion figures have risen. This is particularly good news for the first-time home owner, and those attempting to gain a foothold or step up into those more affordable property categories and suburbs. By using the services of a mortgage originator such as Ooba, a buyer’s chances are even better to get a home loan, provided they meet the affordability and credit score criteria.
Does this mean the property market is great? It’s not that straightforward. From December 16, 2017, the volumes began to improve. Normally once volumes improve, stock levels reduce, and prices go up. However, we believe there has been a slight increase in supply of properties on the market, and as a result, this is slowing down the price increase.
So, house prices are not going up in any meaningful way, and the drain on consumer finances by the stagnant economy - fuel, VAT, utilities – is taking its toll. But, still, South Africans are resilient – they’re largely tightening their belts in other areas so they’re able to manage their home loans, rates and related expenses. In Wakefields’ experience, sales are rarely forced ones. Sellers may be downsizing or relocating, but not exiting the market.
For investors, this is a good time to buy…and they are. As they say, fortune favours the brave, and there are those who are capitalising on niche market segments like buy-to-rent near educational institutions. Property has rarely been a quick-buck investment, and it won’t be that now either. For those investors who’re in a position to wait out the inevitable cycles, there are good investments to be found throughout KZN.
Bear in mind, as constrained as the economy may be and feel, our bond rate is low, and is generally forecasted to remain such until at least the end of the year. This factor has undoubtedly provided a measure of stability and relief for homeowners, clearly reflected in Wakefields’ figures of a 20 percent increase over the same period last year.
Author: Anne Schauffer
