remain key considerations in the residential property market. While it is a buyers market, property experts say consumers are not rushing to buy property just yet, possibly waiting to see how the elections pan out. This means properties are taking a little longer than normal to sell.Home Realty’s managing director, Adeline Naude says the market has changed considerably since 2017 when she expanded her business to Johannesburg.
Naude says properties in the R3.5 million range are being bought at a much faster pace, followed by those priced between R800k to R1.3 million. She does confirm though, that properties are now staying on the market for longer than the average of six months. Getabond Home Loans, Andre Parsons explains, “The biggest factor I would say is interest rates. To qualify in an entry level home loan of about R950 000 in the qualifying salary for a bond of R950 000 in the beginning of January 2022 you would have needed to earn R25 000 a month. Now it’s R35 000, so it’s a huge difference, it’s taking a whole lot of buyers out of the market, so many fewer people who can enter the market.
“99% of the time if a property doesn’t sell it’s price, market conditions, supply and demand determine price. You may not think that because you paid R1.5 million for your property three years ago is now asking R1 550 000 million is overpricing the property you would never think that, just wanting to break even you never think you’re overpricing. But you are probably going to have to take down the price in order to sell in a relatively shorter time.
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