Top reasons for home sales
South Africa’s high crime rate, power shortages and recent xenophobic outbursts are among some of the reasons why so many South Africans are considering emigration. The FNB Property Barometer however indicates that emigration is not the main reason for home sales in the country. Marsha Haupt (pictrued right), sales director at Betterbond provides practical insight into the top reasons for home sales.
Statistics show that 21% of homeowners, who are selling, are downscaling due to financial pressure. “At the moment, this is the most common reason for people placing their homes on the market,” says Haupt. Due to interest rate hikes and higher fuel and food prices people are finding themselves in financial hardship. Higher income individuals with two or more properties are selling off units that were purchased for investment or holiday purposes in order to protect their cash flow.
Downscaling in line with life stages is also widespread as people who are retiring or who have no children living with them opt to move into smaller accommodation. On the other hand, young couples who are starting families are up scaling to larger properties in order to cater for the growing family.
Homeowners also place homes on sale in order to move to somewhere that offers better security and lower maintenance. The popular choices are golf estates and other complex developments with formal security.
Often people relocate within the country for work related reasons such as promotions and work opportunities and also sometimes to be closer to work premises due to increasing fuel costs. Retirees are also known to relocate within the country to coastal or country regions for a more relaxed quality of life.
The FNB Property Barometer indicates that emigration accounts for 12% of the total of homeowners placing their homes on the market. Research shows that the average house takes approximately 132 days to sell and sectional title property 120 days. Sellers are being forced to drop prices in order to sell their property.
“At this point there is more supply than demand in the property market. This is largely due to the rising interest rates and soaring inflation which has made keeping up with bond repayments difficult for many, ultimately leading to increasing numbers of homes being placed on the market. The National Credit Act also plays a role as it has made it difficult for first time homebuyers to enter the market,” concludes Haupt.
