With 2014 set to be a milestone year as we celebrate 20 years of democracy and hold elections, there is much to be upbeat about. After five years of inhibited growth, activity in the primary urban areas has strengthened notably with conditions at the healthiest levels since the economic down-turn. Next year, we may well see the first signs of real growth and double-digit price growth is a real possibility in the primary urban areas. Based on our turnover that is up by 20% year-on-year and agent feedback, activity has improved significantly with more buyers at show houses, multiple offers and better prices for sellers. This, along with growing stock shortages point to greater normalcy and balance and, while still too early to talk about a major recovery in view of the wider economic landscape, we anticipate a more robust 2014.
Price gains though will remain conservative, but sellers can look forward to shorter selling times and good offers provided the pent up demand persist. The protracted low demand in the coastal and second home markets is likely to continue with buyers discerning and particular about what they are looking for and how much they are prepared to pay. The historically low interest rate will continue to boost home affordability and while some areas are moving towards a sellers’ market, conditions will continue to favour buyers. For those that can and want to buy, the time is now. Sellers too can look forward to better selling prices and in turn take advantage of the favourable buying conditions.
Recovery of the market will be slow with the primary sector picking up the bulk of the momentum as we have seen. The key macro-economic indicators, most notably economic and job growth will continue to drive the market and only once the economy picks up are we likely to see a significant uptick in sales volumes and prices. For now though, we are optimistic about the outlook for 2014. Visit www.seeff.com for more information or contact us on 044 533 0311 or email plett@seeff.com<mailto:plett@seeff.com> . •