Should you sell or wait for a better price?
Despite the hastening of interest rate hikes amid rising inflation and global economic stressors, the Cape Town property market is still performing above average compared to the rest of the country, especially the other major metros.
In fact, a recent opinion piece by John Loos, property sector strategist from FNB, points towards the Cape Metro property market as simply on a trajectory of its own. This includes the highest volume of new building plans which is always an indicator of strength and growth in the market.
Lightstone and Propstats data support this and show that overall the Cape Metro is still trending above the pre-pandemic sales levels. Aside from continued activity from locals moving about and getting into the market, a resurgence of semigration from upcountry provinces and more recently also from KZN is driving demand.
We are also still seeing higher and faster sales compared to the other metros. Lightstone data for example noted that sales for the first half of the year was the highest since 2017. Even the higher price bands are still seeing strong activity across the Cape Metro property markets.
While there may be an inevitable downward trend as the interest rates and rising costs start impacting on consumers and buyers, the question arises whether it is a good time to sell, or whether sellers should wait. A market decline could mean fewer buyers and lower prices.
Is it still a good time to sell, or should sellers wait for a better price?
While the right time to sell depends on the motivation and needs of the seller regardless of market conditions, analysts are pointing to a still favourable phase for sellers in the Cape market.
We are still seeing the Southern Suburbs and Constantiaberg area as favourable which means that it is still a great time to sell, provided your price is right for the market. It, however, does not mean that sellers can increase their asking prices. The reality is that despite the strong demand, price growth continues its downward trajectory. Buyers are well informed and still have the choice to walk away. Sellers who price too high may well risk not attracting an offer.
Choosing the right agent - why the perfect match matters
Choosing the right agent still makes the difference between a property selling or staying on the market. With so many newcomer agents who often look to secure property mandates by any means the risk for sellers has increased. Appointing the wrong agent can waste valuable months during which the property could already have been sold. It also risks putting off potential buyers who will be distrusting of putting in an offer.
There is no "one size fits all". Each neighbourhood is different and often requires unique insight and experience. Be careful of not just choosing an agent who promises a high price or the lowest commission. An experienced local area agent will have spent many years building their reputation and will not want to risk it by giving the wrong advice, or to simply secure your property mandate.
Choosing the right agent and awarding a Sole Mandate offers many benefits - from pricing properties more appropriately for the market to generally selling faster and achieving better prices on average, and a smooth and efficient sales process.
As a property owner, you could do well by tapping into the current market energy with pre-pandemic interest rate levels and relative stock shortage. It's a good time to sell.
