Yes – we do live in an uncertain world. But, if sentiment is anything to go by, then 2012 will be a great year.
For Harcourts Platinum in Somerset West, December 2011 was an excellent month for property sales – their best December in history. Decembers are usually much quieter months for property sales, but the fact that this December was busy is an indication that property purchasers are ready to commit to a purchase when they see fair value.
For the past few years property sellers have been hoping that the property market and world economies would improve. This resulted in many sellers being reluctant to price their properties correctly and buyers being unprepared to overpay for property.
In the 3rd and 4th quarters of 2011 there was an indication that property sellers in the Helderberg area were coming to terms with the market, and adjusting their prices in line with market feedback.
The result? Sales! Yes, in any market, when a product is correctly priced and there is demand, this will result in a sale.
Fortunately there is always going to be a strong demand for property, as it’s a basic necessity, and a basic right, for people to live in a home.
So what’s the good news for 2012?
Hopefully we should see the South African banks maintain their appetite for homeloans, even though it is tempered by their desire for only row-risk lending.
Property sellers should continue to price their properties realistically. A professional estate agent should be able to provide them with a realistic Comparative Market Analysis which will show what the market value is.
So, if you need to sell in the next 2 to 3 years all indications are that you are better off pricing correctly and selling now.
And, if you’re buying – there has never been a better time than now with prices again being realistic, banks granting finance to credit-worthy buyers, and interest rates the lowest they’ve been in decades.
Roll on 2012! And let’s keep the positive sentiment going!