Credit Act takes toll on 18 000 estate agents
As the interest rate hikes bite, the number of potential home buyers has halved and houses are spending double the time on the market than previously, spelling hard times for estate agents.
At least 18 000 of them have lost their jobs in the last year as they struggled to sell over-priced homes in a climate in which consumers can't afford to spend.
Estate Agency Affairs Board (EAAB) chief executive Nomonde Mapetla said the economic slow-down has resulted in the number of estate agents registered with them dropping from about 78 000 last year to 60 000.
By some estimations SA can only support 30 000 - 40 000 estate agents, which means there's another 20 000 to go.
And of course the blame for everything goes to the NCA not the more obvious choice of ridiculously high property prices requiring a takehome pay of close to R40 000 a month to afford the average house.
3 comments:
Hey CT,
Great blog. I'm a property investor, and I think that what is happening now is a long awaited correction.
Unfortunately, there has been a massive push by some unsavoury self declared property "Gurus" to get people into property in the wrong areas, at the wrong time, and we have all suffered for it. Housing needs to be attainable to the man in the street, and it's currently not. I think we're in for some more price corrections..
-Dom
http://modsays.blogspot.com
Bummer about these poor agents. now there have to go back to the trades the did before they became estate agents....you know, like plumbing, dog walking, tuis bedryf, whoring etc
It is sad that these real estate agents have to close shop but I think if your business can survive through current economic conditions, you will have a strong well managed business that can take a knock when it needs to.
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