{"id":220651,"date":"2018-01-28T08:40:24","date_gmt":"2018-01-28T06:40:24","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=220651"},"modified":"2018-01-28T08:40:25","modified_gmt":"2018-01-28T06:40:25","slug":"how-much-you-should-lower-your-price-if-you-want-to-sell-your-house","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/banking\/220651\/how-much-you-should-lower-your-price-if-you-want-to-sell-your-house\/","title":{"rendered":"How much you should lower your price if you want to sell your house"},"content":{"rendered":"

While estate agents saw further weakness in the South African residential market in the fourth quarter of 2017, this may change soon, says FNB property strategist, John Loos.<\/p>\n

FNB data showed that 2017 was the third consecutive year of weakening in the market, which was always anticipated after a multi-year economic performance stagnation dating back to around 2012, and amid weak business and consumer confidence as concerns surrounding future political and economic policy direction mounted.<\/p>\n

According to Loos, 2018, being the year of the \u201drun up\u201d to the 2019 general election could conceivably be another year of policy uncertainty. But some leading economic indicators do at least point to some near term improvement in the economy, while a change of leadership in South Africa\u2019s ruling party in December appears to have boosted sentiment, if the rand\u2019s subsequent strengthening is anything to go by.<\/p>\n

“And this is why we would expect a slightly better residential market performance to emerge in 2018,” he said.<\/p>\n

When one talks of weakening or strengthening in a Housing Market, it refers not to the strength of housing demand, but rather to the balance between housing demand and housing supply.<\/p>\n

One indicator of housing demand that we utilize comes from the FNB Estate Agent Survey, where agents are asked to estimate the average number of \u201cserious\u201d viewers per show house prior to the home being sold.<\/p>\n

Their average estimate was 10.61 viewers per show house in the final quarter of 2017, marginally higher than the 10.29 estimate of the prior quarter. Estimates in recent years having moved broadly sideways since 2016, after a prior noticeable decline from a multi-year high of 16.69 viewers reached at a stage of 2013.<\/p>\n

\"\"<\/a><\/p>\n

FNB also pointed to further increase in the estimated average time of homes on the market prior to sale, to 17 weeks and 2 days as at the fourth quarter of 2017.<\/p>\n

This continued a broad rising trend which began early in 2016, from low of 11 weeks and 1 day at the beginning of that year, Loos said.<\/p>\n

\"\"<\/a><\/p>\n

Looking ahead, Loos said: “An improved economic growth rate, accompanied by our expectation of stable interest rates, should be supportive of mildly stronger Household Sector Disposable Income growth, which in turn should provide some additional support to housing demand.<\/p>\n

“Our own FNB House Price Index may have also begun to show early signs of market strengthening very late in 2018. When we view it on a month-on-month basis, after adjusting for seasonal factors, we see that after a lull in price growth in mid-2017, there was a late \u201cpick-up\u201d of sorts in December.<\/p>\n

“It is too early to tell as to how sustainable such a month-on-month lift is,” Loos said.<\/p>\n

However, he added that it is more the rise in the Leading Business Cycle Indicator, which in part reflects a reasonably solid global economic performance, and a perceived sentiment improvement in South Africa early in 2018, “which lead us to expect that, despite agents not yet reporting actual improvement in the market on a national average basis, 2018 should bring about a slightly stronger housing market”.<\/p>\n

\n

Read: This is how much the average house costs in South Africa \u2013 for first time and repeat buyers<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

While estate agents saw further weakness in the South African residential market in the fourth quarter of 2017, this may change soon, says FNB property strategist, John Loos.<\/p>\n","protected":false},"author":10,"featured_media":208683,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[961],"tags":[76,26],"class_list":["post-220651","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","tag-fnb","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/220651","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=220651"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/220651\/revisions"}],"predecessor-version":[{"id":221575,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/220651\/revisions\/221575"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/208683"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=220651"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=220651"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=220651"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}