Residential Market Segment performances “converging”
South Africa - FNB
We ponder the next potential 2019 property theme…the Lower Income Area end’s “outperformance” fading away.
We continue on our look ahead to 2019 for likely “key themes” that may play out in the course of next year. Often in a property cycle we see the higher priced end of the Residential Market leading the downturn and the lower end “catching down” later. After a relatively good period in a property cycle, the high priced end can be the first segment to run into home affordability challenges, the lower priced areas having “more legs” as a portion of home demand shifts downward from higher priced end to middle or lower priced areas in search of greater affordability. But ultimately economic stagnation will normally affect all segments. Lower income households may be more sensitive to economic and interest rate cycles due to their more limited financial buffers built up to “weather the storm.
Housing Segment Performances Converging
Seven pricing myths debunked
South Africa - Seeff
Sellers inevitably want the highest possible price which often results in thinking that setting your price at the highest possible level will get you better offers closer to the desired price. In reality, nothing can be further from the truth. Setting the asking price is an art, best understood by a skilled and experienced area agent who keeps their eye on the market and local area selling prices and will give you the best advice.
Simply put, sales success starts with the correct asking price. Setting the price at the right level can mean the difference between getting a quick offer and drawing little interest which may result in having to drop your price to get an offer. There are many pricing myths which can stand in the way of a successful sale. Let’s examine the seven most common pricing misconceptions:
Credit and mortgage advances
South Africa - Absa
Continued moderate growth in household credit and mortgage balances
Growth in the value of outstanding credit balances in the South African household sector, which amounted to R1 610,2 billion at the end of October this year, remained on a gradual rising trend from 3,7% year-on-year (y/y) at end-January to 5,2% y/y at end-October. While growth in household secured credit balances was on a slight upward trend up to October, it was the component of unsecured credit balances that showed a noticeable rising trend in growth over the 10-month period.
The value of household secured credit balances (R1 229 billion and 76,3% of total household credit balances), which includes mortgage, leasing and instalment sales balances, increased by 4,4% y/y up to end-October from 4,5% y/y at end-September and 3,9% y/y at end-January this year. Growth in mortgage balances was largely stable up to end-October compared with preceding months, whereas growth in instalment sales balances (R273,8 billion and 22,3% of total household secured credit balances) remained relatively strong at 6,9% y/y in the period January to October.
Credit and mortgage advances
HIPs-style 'Home Owner Passport' launching to speed up conveyancing
UK - Estate Agent Today
A firm is launching a new Home Owner’s Passport this weekend in a bid to speed up conveyancing. With characteristics reminiscent of the much-derided Home Information Packs - scrapped in 2010 - the HOPs aim to “provide guaranteed completion timescales” according to the firm introducing them, Teal Legal. The passport, which will exist online, has been devised by the firm in a year-long collaboration with Keele University.
It works by interrogating conveyancing due diligence data and applying algorithms to work out how complex the conveyancing transaction is likely to be. Based on this information, a predicted conveyancing timescale is generated.
Estate Agent Today
Interest rate hike: More pressure on South African consumer
South Africa - Harcourts
South Africans will continue to remain under pressure as the governor of the South African Reserve bank Lesetja Kganyago announced yesterday that the bank will raise the repo rate to 6.75% from 6.5%. With the repo rate at 6.75%, the prime lending rate will increase to 10.25%.
Changes in the repo rate influence the prime lending rate, this is the rate banks use to determine interest rates for clients. The increase in rates translate into higher monthly repayments on debt, this includes your bond, car finance, credit cards, retail accounts and personal loans.
Interest rate hike