As South Africans go to the polls to vote in the municipal elections, what impact will the outcome have on the property market now and going forward?
The market, in general, becomes slower before the elections take place, as people are unsure of what the outcome will be. Therefore, the property market has an expected slowdown before the elections. Experts in the property industry feel that the market is, however, remaining cautious as South Africans fear another economic downturn.
Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett, commented “That said, I think that after the elections there is likely to be resurgence in the property market and a bit of an uptick as consumer confidence returns and more buyers get ready to get back into market.”
According to property experts, the market may experience a slightly prolonged slow down, due to inflated property prices and buyers simply not being prepared to pay these prices. However, the experts say that this shouldn’t last long and the property market should bounce back once house prices have adjusted accordingly. This means that the market is in a transition phase currently, and will soon shift in favour of the buyer.
Buyers, before rushing out and making a hasty property purchase when the market turns, take note of these considerations:
- Remember that property is a long-term investment, so make sure that you are not wanting to relocate to another province any time soon. Buying a home ties you down and limits your job choices, so location is of utmost importance.
- Make sure you are truly financially ready to purchase a home - this includes the various extra costs that come with buying a property, over and above the purchase price.
Sellers, here are a few tips on how to sell your home quickly in a slow market:
- Consider your reason for selling. If this reason revolves around attaining a certain price, it might be better to sell at a later stage.
- Ensure that your home has sufficient “curb appeal” and any cosmetic improvements that may be needed, have been done.
- Review your marketing plan and make sure that your strategy is suited to the slower market, and that your home is priced accordingly.