WHAT YOU SHOULD BE AWARE OF SHOULD YOU WANT TO SELL YOUR HOUSE
Property Sales trends show that real estate prices have been under pressure of late. It has, at best, been moving sideways in nominal terms over the last 12 months. Similarly, sales activity has also suffered a decline, clearly illustrating that we are currently in a buyers’ market. It is only natural that, as a home-owner, one prefers not to be confronted by such negative statistics. Nevertheless, it is better to be informed and realistic about the real estate market, especially if you are looking to sell your property in the near future.
Flat Fee Homes is a real estate agency with it’s Head Office in Somerset West. Our principal and our estate agents have been residing in and servicing the area for many years. We have, therefore, recently drawn statistics for property sales in Somerset West. Property sales statistics for the first nine months of the 2019 calendar year (January to September) were compared to the same periods for 2018 & 2017.
PROPERTY SELLING PRICES 2017 TO 2019
|Median prices||2019||2018||2017||2019 vs 2018||2019 vs 2017|
|Full Title Properties||R 2,836,262.60||R 2,880,777.78||R 2,744,771.70||-1.5%||3.3%|
|Sectional Title Properties||R 1,950,886.35||R 1,499,158.49||R 2,054,228.75||30.1%||-5.0%|
|All Properties||R 2,501,861.93||R 2,372,853.00||R 2,577,809.44||5.4%||-2.9%|
The table above shows that, whilst selling prices of full title properties have increased by 3.3 % over the two year period from 2017 to 2019, average prices have decreased by 1.5% over the last 12 months. It should, however, be noted that these property price movements are reflected in nominal terms. Should an annual inflation rate of 6% be applied, the real property prices have actually declined by 8.7% since 2017 (R 3,084,025 vs R 2,836,263) and by 6% over the last 12 months.
Furthermore, selling prices of sectional title properties have declined in nominal terms by 5.0% from 2017 to 2019 (note that a comparison for the last 12 months is distorted by a large sectional time scheme which came to market at a below-average price). More vitally, the real term decline from 2017 to current, after adjusting for inflation, is a significant 12.4% (R 2,308,132 vs R 2,054,229).
PROPERTY UNIT SALES 2017 TO 2019
|Unit Sales||2019||2018||2017||2019 vs 2018||2019 vs 2017|
|Full Title Properties||491||547||646||-10.2%||-24.0%|
|Sectional Title Properties||298||318||206||-6.3%||44.7%|
Unit sales of full title properties have decreased by 24.0% over the two year period from 2017 to 2019 and by 10.2% the last 12 months. However, property sales statistics show that the opposite is true for sectional title properties, which have increased significantly by 44.7% between 2017 and 2019.
SUMMARY MARKET TRENDS FOR SOMERSET WEST
To summarize, it is evident from the property sales trends reflected here that the real estate market, in the Somerset West area, at least, has gone through an adjustment. This is particularly relevant for full title property. It is also important for current home-owners and sellers to note that both selling prices and selling activity have declined.