SOLD!
Category Property Ownership
What an incredible upsurge in real estate activity in July and August!
I believe not even the most seasoned property professional could foresee the market humming with sales and letting transactions straight after Lockdown restrictions were eased. The flurry of buyers scrambling for 'that special home' is uncommon in such a short space of time.
What IS this? Why now? Of course, we don't want to analyse too much, and we definitely want it to continue, but it is puzzling - to say the least.
Some might argue that there is a pent-up demand due to the National Lockdown, but that alone could not have caused real estate agencies reporting their best month in the past 2 years. Over-priced stock sitting on the market for long periods of time, now proudly display a SOLD sign. In many parts of the country, especially in smaller communities, properties are being sold within a week of being listed and often at a price higher than the asking price. This is a sign that the market is changing under our noses! The reverse is true in the cities, where supply is still higher than the demand.
The low interest rate plays a big role in the current rush to buy as buyers could qualify for a home loan much easier. In reality though, the financial institutions are very cautious and adhere to strict measures before offering the low interest rate to clients. They are keen to finance those with a good credit record, a deposit, and clearly can afford the repayments - even should the interest rate go up. So, if you fit the profile, right now is a great time to buy. Ask your estate agent to assist you in obtaining a pre-qualification for finance; then go and find that new place to call "home".
Undoubtedly, another important factor is this feeling of revitalization filling the air!
After many months' of being confined to our homes, we can travel again, visit friends and share Lock-down stories with family members around the braai - a new-found Freedom. Mentally and emotionally this Freedom is invigorating and sets the stage for new goals, like investing in property. We look at money differently now, as for the future, the quality of life, and where we want to live.
Springtime brings with it a freshness, a time to breathe easy and to see how nature unfolds into vibrant colours around us. Could it be that this season, which traditionally boasts the best time to sell and buy property, will be the force to propel the real estate trajectory to new heights in September?
Author: Adrie Barnard
