How's the Market? March 2020

As a professional I stay informed on the front line and interpret the data available. Plus now we are going to be influenced by other factors like the Corona virus, which effect will be more monetary than health related.

Although your property is your home, it is also your most valuable asset. Understanding the market starts with an overview and then delving deeper into specific sections and area to give you an idea of what can be expected in the coming months. Noordhoek Valley includes the suburbs of Capri, Milkwood Park, Sunnydale, Sun Valley and Faerie Knowe. This month we focus on Sunnydale & Milkwood Park.

This is how the "Valley" performed this month:

Glad to report that the number of transfers are still increasing and this month by 28% whilst the Median value of transfers has dropped marginally by 1,3%. The lower end of the market is still moving fast compared to last year this time and sales in the R2 - R2,5 million bracket is picking up momentum. Will be following up on how the middle to upper range properties perform in the next 3-6 months.

This month the spotlight falls on SUNNYDALE (which includes Milkwood Park) and how your investment has performed.

Milkwood Park and Sunnydale is literally the heartbeat of the Noordhoek Valley, boasting family orientated suburbs with great neighbourhood watch involvement, parks for kids to play and great long term growth.

I sold both the highest sales price and the lowest sale price in the area in 2019 - soo cool to have a look back at the year past and remembering the people in the transaction!! 71% of recent buyers are young starting out or middle aged - definitely showing the popularity of the suburbs with families.

Sunnydale and Milkwood Park usually sells around 67 properties per year, where last year only saw 50 homes exchange hands. Sellers who owned their homes for 4 years or more achieved an annual compound return on investment of 9.29%. (10 years or longer saw an increase of 10.21%) Holding on to their properties for less than 4 years only marginally increased their investment of 3.79% year on year. Greater opportunities presented in the upgrade market, was a bigger carrot than staying put to make more money.

Sellers had to drop their asking prices with 8.66% in order to achieve a sale - much less negotiations needed than surrounding suburbs. Time in the market of 117 days, was much lower than competing suburbs in the Noordhoek Valley.

So lesson from Sunnydale & Milkwood Park? Either commit to a 4 year plan or make sure you upgrade if you are not.

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