ooba figures show improvement in market

According to the latest oobarometer report, the average purchase price of homes in South Africa has gone up 5,2% year on year, and, according to Rhys Dyer, COO of ooba, "The property market is gaining confidence and we expect property prices will continue to show positive nominal price growth for the year ahead.”

Their figures show that the approval ratio of bonds in January 2012 was 60%, up to 64,7% in December 2012 and increased again in January 2013 to 65,7%.

The average initial decline on bond applications was 50,3% in January 2012 down to 46% in January 2013.

“This is in line with the improved movement in the market that we at Knight Frank Anne Porter are experiencing, which is driven to a large degree by the relaxing of the banks’ lending criteria. The banks overly stringent criteria has up until now been the stumbling block to the growth in the economy,” says Lanice Steward, managing director of Knight Frank Anne Porter.

“However, sellers beware, that this does not necessarily mean that you should be trying to achieve unrealistic higher prices for your properties. In fact, if an average property has been on the market for over 90 days, you do need to reassess the price,” said Steward.

“Although the purchasing of a property is often an emotional decision, buyers are increasingly educated about the market before they actually start looking and will look around extensively for the right price before they look at the show house.”

“Remember that as a seller, you will be the buyer somewhere else, and you would not buy an overpriced property,” said Steward.

Article from: www.anneporter.co.za

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