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Further hints that a buyers’ market is on its way – FNB

Further hints that a buyers’ market is on its way – FNB

<p><strong><a title="Real estate agents in South Africa" href="http://just.property">Real estate agents</a>&nbsp;surveyed in Q2 2016 presented a picture of a &ldquo;well-balanced market&rdquo;, according to John Loos, FNB</strong><strong>&nbsp;household and property sector strategist.</strong> &ldquo;However, indications are that the slowing demand trend has resumed in Q2 after a brief stalling in the previous quarter, supply constraints are being alleviated, and the market balance may have begun to weaken,&rdquo; he said. &ldquo;It is early days, but some quarterly deterioration in indicators of market balance or price realism begin to hint at a possible shift away from market equilibrium to come.&rdquo;</p> <p>&nbsp;</p> <p><strong>Key takeouts from estate agents sampled:</strong></p> <ul> <li>Average estimated number of viewers per show house declined to 9.64 in Q2 2016, down from 11.6 in the prior quarter, and below the 11.05 estimate for the corresponding quarter a year ago. The cumulative decline in recent years has become considerable, from a high of 16.69 estimated in Q2 2013.</li> </ul> <ul> <li>The percentage of agents citing stock constraints as a factor in shaping their near-term expectations declined to 10.7%, from 17.3% in the previous quarter. This is significantly down from the 24% high reached in Q1 2015.</li> </ul> <ul> <li>The market remains well balanced. However, the estimated average time of <a title="properties for sale" href="http://just.property/residential-property/for-sale/">properties for sale</a>&nbsp;on the market showed a noticeable increase from the previous quarter&rsquo;s 11 weeks and 1 day, to 13 weeks and 4 days. Although it is too early to draw conclusions after only one quarter, and such an average time remains a fairly solid one still, this increase may hint at a near-term shift in the market away from equilibrium.</li> </ul> <ul> <li>Agents reported a slight further rise in the percentage of sellers having to drop their asking price, from 88% in the previous quarter to 92% in Q2 2016. This is noticeably higher than the 78% recorded back in Q2 2014. The estimated average percentage asking price drop, on those properties where a price drop is required to make the sale, was -9%, slightly more than the -8% of the previous quarter, but unchanged from the 2nd quarter of a year ago.</li> </ul> <ul> <li>Agent perceptions of housing affordability have deteriorated mildly, with as many as 31% saying that &ldquo;income levels have got far behind house prices&rdquo;. This is compared to 11% back in Q3 2014.<br /><br /></li> </ul> <p>Article from&nbsp;<a href="http://hometimes.co.za/2016/07/further-hints-that-a-buyers-market-is-on-its-way-fnb/">hometimes</a></p>