top of page
Search
Writer's pictureLindi Brougham-Cook

How's the Market? August 2020


The local Real Estate market coming out of lockdown has not hit the doom & gloom of 20% drop in prices as was predicted by some financial experts.


It can only be described as a bag of liquorice all sorts - a little bit of everything!


As a professional I stay informed on the front line. We shift our mindset as the market shifts in order to be able to give you the best information to make decisions.


For any further information or to get your own assessment done, please do not hesitate to contact me.


There is a steady supply of new homes coming to the market, where the sellers were not able to during lockdown. There are buyers out there – although the peak of pent up demand has tapered off slightly in August vs July.


The major issues we are experiencing is bond approval and the Deeds Office timing.


At this stage only Standard Bank and ABSA are loaning monies – FNB and Nedbank has been risk adverse and my bond consultant said you can set your stop watch to the declines that come through from the last mentioned banks. My personal approval rates has dropped from a consistent 92-94% in 2019, to below the 85% approval rate in the last 2 months.


Deeds Office turn around times are improving, personal experience is now sitting at around 5 weeks down from 7 weeks turn around time last month.


Good thing is that the amount of properties in the market is dropping, which mean we are moving towards a balance market, not sitting chest height in buyers market. Stock levels has dropped from a 14-16month supply to a 8 month supply in areas. New sellers in market are concluding sales within 30-45 days on the market vs the 120 days plus pre-Covid.


Some transactions have registered, however stats will be scewed for some time to come....

Noordhoek Valley - Capri, Milkwood Park, Sunnydale, Sun Valley and Faerie Knowe.


What is my home worth?

In the past we would have looked at data from Registered Sales, however in the current market, we would now need to take competition in the market, the lucky one's under offer and historical sales into consideration. As a market expert in the Valley, I can assist you with interpreting the data to ensure you make an informed decision.


We do not have a crystal ball to predict what the market will do 1, 3 or 6 months from now. My personal opinion is that the aftermath of the Covid pandemic has not yet been seen in the property market. Bond holidays has now come to an end, and should some home owners still experience trouble, the market could get flooded with new stock towards the end of the year. More stock means more competition and pressure on prices.


All conversations with me regarding the value of your home is strictly confidential, and even if you don't want to sell, but just want an indication of what your home is worth - Please do not hesitate to contact me on 0711 658 993.


17 views0 comments

Comments


bottom of page