Estate Agent Survey Indicates Improved Conditions in 2010

January 28 - Estate agents surveyed in the fourth quarter of 2010 indicated a slight rise in the strength of the South African property market.

The agents believe that renewed interest rate reduction in September led to a positive impact towards the end of the year.

Although there has been an improvement in the length of time it takes to sell an average property in South Africa, agents believe that the 15 weeks and 6 days in took in the fourth quarter is still too long.

In 2008, it took 22 weeks to sell a house, but in 2005/2006, the average time was below two months.

Agents believe that the nearly 16 weeks it takes today is partially due to unrealistic pricing in the market.

On the whole, South African estate agents polled in the survey believed that 2010,? was better than the 2009 market.

However, many believe that it is not guaranteed that 2011 will be better than 2010.

When asked about the factors that influenced near term expectations, agents revealed that low interest rates are their number one influence, followed by tight bank credit criteria.

The third influencing factor is pricing and affordability.

All in all, South African estate agents were pleased overall that 2010 was better for the property market than it was in 2009, although they don't have high expectations for 2011 due to an unrealistically priced property market.

1/28/2011 11:45:56 AM