Why now truly is the time to buy

It is always a good time to purchase property; at least, that’s what everyone in the real estate business will tell you. Considering that local property is still the top performing asset class according to STANLIB’s latest monthly asset class report, the advice is far from incorrect. However, it does make it tricky for investors to know when the best time is to invest in real estate.

According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, this time around it is not just hype. “Bar ongoing concerns around our national power utility, there have been several positive outcomes for the South African property market during the first quarter of this year. Following stable interest rates and an unchanged credit rating, investor confidence in the local property market should continue to strengthen. In fact, contrary to what others in the industry might feel, I believe that we quite possibly have already begun to see the early signs of a long-term price curve of a real estate market that is preparing to shift from a buyer’s market into a seller’s market post-elections,” Goslett explains.

Goslett furthers this by quoting statistics revealed in the RE/MAX National Housing Report for Q1 2019. According to this report, Lightstone data reflects 8.5% growth on the median asking price for a freehold home in Q1 2018 to R1,122,349 in Q1 2019. Likewise, the national median price of a sectional title grew by 5.2% to R1,049,810. The average active RE/MAX listing price also increased by 9% from Q1 2018 and amounted to R2,598,255.74.

“Last year was a slow year that realised negative real house price growth taking inflation into consideration. Although market activity is still slow, I am expectant of minor real house price appreciation by the end of the year. Property prices are likely to continue a slow but steady upward climb, making it increasingly difficult for buyers to enter the market. For those who have the resources to purchase property, now therefore truly is the best time to do so,” Goslett concludes.