How to bounce back after overpricing
South Africa - Rawson
While every owner wants to sell their property at the best possible price, overpricing a home can be the kiss of death for a sale. Modern buyers are well-informed on what they can expect for their money, says David Jacobs of the Rawson Property Group. They have little patience for unrealistic prices, and are very likely to avoid overvalued properties altogether.
This, he says, has left many a misinformed seller with a stagnant listing attracting no interest on the market, but doesn't have to spell the end of all hope for a good sale.
"A lot of homeowners who have accidentally overpriced their property - either of their own accord or because of poor advice from their agent - end up selling for far below market value because they don't know how to bounce back from their mistake," says Jacobs.
How to bounce back after overpricing
Joburg property owners must check municipal valuations
South Africa - IolProperty
Joburg property owners are urged to check the values of their properties from February 20, when the general valuation roll opens to the public.
The valuations, which affect some 880 000 owners, determine the monthly rates levied.
Property owners have 45 days - until April 6 - in which to lodge their appeals if they feel their property values are too high or too low.
"Property owners within the boundaries of the Joburg metro have the right to inspect the general valuation roll and object to either an entry, or against an omission from the roll," said the member of the mayoral committee for finance, Funzela Ngobeni.
Once the roll has been finalised, objections will only be allowed through. Every property value is linked to its market value, which is a determinant of the rates payable by each owner, he said.
IolProperty
Cape Town House Price Indices
South Africa - FNB
Conclusion
In short, overall the City of Cape Town has seen some mild slowing in average house price growth over the past 6 quarters, although the most recent 10.8% year-on-year growth rate remains strong.
When viewing the major sub-region house price indices, however, slowdown is far from across the board. Rather, it would appear that the most noticeable slowing in house price growth is at the high end, after some years of strong affordability deterioration. But the resultant search elsewhere for greater affordability has perhaps been key in sustaining solid demand lower down the house price ladder, and we have indeed seen price growth accelerations in 2017 in many of these more affordable housing regions (relatively speaking) further away from Table Mountain.
Has the drought taken its toll on the housing market in Cape Town in a significant way? We are not yet convinced. We believe the price growth slowing is more due to “market natural” causes in response to prior years of significant home affordability deterioration. Going forward, however, should the drought conditions deteriorate further, at some point it is conceivable that they may become “recessionary” for the Western Cape economy, should it reach a level where much industrial production needs to be scaled back and a lack of water hampers tourism and other economic sectors. A negative economic and employment impact should ultimately be a negative housing market impact. But we don’t believe that it has got to this level yet, and much will depend on this Winter’s rainfall.
Cape Town House Price Indices Feb 2018
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