How's the Market? January 2020

Welcome to 2020!

Knowing what is going on in your "hood" is important whether you have been looking at selling or buying in an area, or just keeping up to date with your portfolio.

I will be updating you monthly on how the market is performing, what is new, what has sold, how much they got and how their investment served them in the time they owned the property.

First we start with a quick look at the amount of sales in the Noordhoek Valley - Capri, Milkwood Park, Sunnydale, Sun Valley and Faerie Knowe.

These numbers below represent actual transfers in the deeds office:

The number of transactions has slowed down to 9 transfers per month from 14 transfers per month, however the average selling price has increased in the area. Typically speaking a higher priced property takes longer to sell, as the potential market is smaller of buyer who can afford the home.

This month the spotlight falls on CAPRI and how your investment has performed.

Capri usually sells between 36 and 56 homes per year. Last year saw 39 homes change ownership. Resent buyers & Sellers are between the ages of 36 - 64. This means that Capri is predominately a family suburb with upgrades and rightsizing happening all the time. We had a client sell in Clipperton to upgrade to Grand Bahama. Reasons for selling included emigration, upgrades and moving closer to town for work purposes.

Sellers who owned their home for 5 years or less achieved a 8,28% compound interest increase year over year, and the ownership of 11 years or more achieved a 9,7% increase year on year. Very good numbers. 6-10 years of ownership equaled a marginal increase of 6,11% year on year.

In the beginning of 2019 sellers spent in the region of 178 days in the market - this has thankfully come down to 131 days from listing date to sale on average. Fastest sale was 10 days and longest was a marathon sale of 845 days - yes 2 and a half years!!

Sellers had to drop their asking prices with 12,7% in order to achieve a sale. The difference between the agent valuation and sales price was only 5,65%. Let's call this difference a "BUFFER". The bigger the buffer, the longer a seller had to spend in the market.

Positive factors underpinning the housing market in 2020 may include several first-time buyers starting to look around, predicted low interest rates to remain, affordability returning as prices correct, and a strong appetite for lending from all the major banks. I think the biggest positive event for the Capri Property Market will be the completion of the R194Million Kommetjie Road Project.

I think we should have a celebration when that date rolls around #HappyDance :)

For any further information or to get your own assestment done - give us a shout!