The Residential Property Market – June 2014

residential property market bergvlietWhile the solid performance of the housing market continues, and Bergvliet is no exception, the most likely scenario will be a gradual tapering off in house price growth nationally to 6% by the end of 2014 due to low disposable income growth and slowly rising interest rates.

Nationally the bird’s eye view is as follows:

• The price of houses is mildly lower. June-7.8% growth down from 8.5% in January 2014.

• Real house price growth (adjusted for inflation), down from 1.58% to 1.07% year on year.

• Average price of homes sold was R960 570.

House prices by June 2014 were 21.7% higher than December 2007 (boom time).

• FNB Valuers Residential Market Strength Index has slowed in recent months due to changes in the economic environment

• For the first 3 months of 2014, there was a 21.4% year on year growth in the value of new residential mortgage loans granted.

• The expectation is that the Prime rate will rise to 10.25% by end 2015.

• Real household disposable income has slowed to a year on year rate of 2%from 5.7% in 2014.

• Stock shortages in residential property, mainly in the middle income bracket R2 to R3.5m. 18.5% of Agents are experiencing stock shortage.

Properties are on the market for an average of 13.6 weeks.

• The average drop from asking prices is 8.4%

• 81% of properties are being sold for less than the asking price.

• The percentage of Buyers buying to let has dropped to 9%.

With Bergvliet experiencing an unprecedented demand for property and prices at record levels, those wishing to upgrade or downgrade should sell on the rising Bergvliet market and take advantage of buying on a falling market in other areas in the months ahead.

SOURCE: FNB Property Barometer

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