It's the beginning of the traditional Summer selling season in Cape Town. Lots of stock coming onto the market means lots of stock has to sell or languish during winter when the winter lull in March rolls round. It's make or break time for a lot of agencies.
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This from Absa in its latest property "research". I thought the Fed and Gordon Brown had a monopoly in gibberish - I was wrong.
"Despite massive job losses recorded in the third quarter of 2009, there are indications from various economic indicators, such as the South African Reserve Bank’s leading and coincident business cycle indicators, that the
economy is on its way to recovery. Although the household sector is still very much under pressure on the back of declining employment, while real disposable income growth is negative territory, housing market conditions are
expected to improve further towards the end of the year and into 2010. Better economic conditions, as well as banks’ less tight lending criteria and the lagged effect of lower interest rates, will provide much needed support to the property market during the course of the next twelve months."
Wow. I had no idea we were enjoying one of these newfangled jobless recoveries they're having over in the States. But hey, if Absa says that negative disposable income growth and rising unemployment are going to produce "better economic conditions", I say let's all rush out and buy some property!
Let the flood gates open.
I find this topic of 'selling season' particularly interesting. Alliance Group is reporting a 91% increase in commercial lots over the last 2 months. http://www.alliancegroup.co.za/catalogue/ (see November catalogue).
Anyone else noticed the mass dumping of commercial stock by listed funds at present? OM; Redefine....
It's going to be very interesting to see whether there are any buyers for all this stock.
It appears that the US Fed may not even be that keen on buying into commercial property:
http://www.zerohedge.com/article/fed-abandoning-bailout-commercial-real-estate
Property valuation report on a house I bought in West Beach in May 2009.
May 2009 - R1,950,000
Nov 2009 - R1,750,000
It is pretty subjective - but interesting none the less.
I'm not to concerned, as its not an investment property - and I'll probably be living in it for the next 10 years.
I got tired of paying R16,000 rent anyways.
hey BC
just saw an article in a london paper quoting Savils saying that they expect property prices are going to do a W double dip with the second drop next year expected to more than wipe out the 3% odd rise in prices this year.
I cant remember, how far behind European trends are we?
16,000 rent on a 1,750,000 house - I was paying less than half that rent on a R2m house. You woz robbed mate.
Now you are paying the same 16,000 on interest to the bank and rates to the government - how is that different ?
Plus you need a years rent just to cover the buying costs.
And after all that the house will probably decrease further in value because housing is 40% over valued in real terms.
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