How is the property market performing?
19 January 2021 | Life Style
To get the most out of this meeting, Adrian Goslett of RE/MAX of Southern Africa, outlines a few simple questions individuals can ask estate agents to help provide a better understanding of the current market conditions.
1. Are we in a buyer’s market or a seller’s market?
A real estate agent can help shed light on which way the market is trending. In a nutshell, a buyer’s market is when the supply of homes is greater than the demand, and a seller’s market is just the opposite of that.
“Local markets each perform differently, so it is important to meet with a local suburb expert who knows your specific market inside and out and can tell you accurately about what the current inventory is like and if there will be greater competition with your own transaction,” Goslett recommends.
2. How long will the current housing market last?
“At the moment, many places are experiencing a high turnover of home sales, partly owing to the record-low interest rates. It is possible that certain markets may soon transform into a seller’s market. Through their experience in their local market, real estate agents may have insight on these swings in the market and when they expect to see change,” he explains.
3. How has Covid impacted the local market?
According to Goslett, it might be worth asking your real estate agent about the impacts Covid-19 has had on the specific area in which you are interested. “The pandemic has changed how many of us live and work, which has had a knock-on effect on where we want to live. Each suburb will have its own unique trend emerge as a result of these changes. For example, there may be more properties available in suburbs near to a city centre as many are choosing to migrate to coastal towns,” he says.
4. Are there plans for development in the area that could affect the local market?
Being local experts for their communities, real estate agents often know of changes in their areas before anyone else does. It is always worth checking in to see if they know of any upcoming factors that may impact the local housing market, such as new developments that may affect the flow of traffic or increase home value.
5. If I am selling my home, how many days are comparable houses staying on the market? And how do their listing prices compare to the value of my home?
Knowing how your home compares to similar listings can help you make a more informed decision and can help provide a rough idea of how long it will take before you can expect your home to sell. Suburb experts can shed some light on these issues based on their own experiences within the local market.
6. If I am buying a home, how do I make my offer stand out in the current market?
“Buyers first need to know what kind of a market they are making the offer in. If they are in a seller’s market, then there will not be much room for price negotiations and buyers will have to put their best offer forward if they want to secure the property. On the other hand, if it’s a buyer’s market, then buyers have a little more room in which to negotiate and can go in lower with their initial offers. Local real estate experts will be able to guide buyers into choosing an amount that will be most appealing to the seller given the local conditions,” says Goslett.
“Local property market conditions can change quickly, so it is advisable to develop a good working relationship with a suburb expert who can keep you up-to-date with trends, Goslett concludes.
For more advice around homeownership or to get in touch with a local expert from the world’s largest brand in real estate, visit www.remax.co.za.