How long it takes to sell your home in South Africa based on its price

While the luxury value house band continues to see a price growth slowdown, new data from FNB reveals that the low income band has also come under pressure in recent months.

The lender noted that it has five area values grouped in the following manner:

  • Luxury Area House Price Index – Average Price of R2.301 million
  • Upper Income Area House Price Index – Average Price of R1.224 million
  • Middle Income Area House Price Index  – Average Price of R866,026
  • Lower Middle Income Area House Price Index – Average Price of R582,164
  • Low Income Area House Price Index – Average Price of R357,938

FNB said that the low income area house price index was the strongest performer in terms of year-on-year growth, at 9.6% thanks to a likely search for home affordability in a strained economic climate.

However, this value band has shown marked slowing, from 13.6% at the start of 2016, and is also significantly slower than the 11.5% in the first quarter of 2017.

The luxury area value band has also slowed noticeably off a relatively high base. From a post-2008/9 recession high of 11.2% year-on-year at the end of 2014, this value band’s price growth has slowed to 5.7% by the 2nd quarter of 2017.

On a quarter-on-quarter basis, a better indicator of recent price growth momentum than the year-on-year calculation according to FNB, there has been a strong convergence of all five area value band indices to very similar rates.

While upper end homes do generally stay on the market for a longer time on average prior to sales than is the case at the lower priced end, FNB noted that the gap has widened since 2015.

In 2014, the lower income area segment showed an average time of homes on the market of 11.54 weeks. This average time has shortened to an eight week average for the first half of 2017.

Middle income areas saw an average time on market of 10.57 weeks in the first half of 2017.

The increase in average time on the market in the upper income area segment was more significant, from 13.36 weeks in 2014 to 15.93 weeks in the first half of 2017.

But the most significant increase in average time on the market was to be found in the high net worth areas (average value = R7.748 million), rising from 15.86 weeks in 2014 to 24 weeks in the first half of 2017, FNB said.


Read: How long it takes to sell your home in South Africa’s 5 major metros right now

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