Pricing it right - Forecasting the property market in 2022 with Jonathan Broekman
Category News
Although we have experienced a trying past couple of years, the property market is expected to withstand the pressure of a recovering economy in 2022. With the Reserve bank forecasting a marginal increase in the interest rates as well as a continued influx of aspirant homeowners looking to capitalise on them, a healthy property market may be expected to emerge from the ashes, but what does this mean for home sellers looking to get value out of their property?.
With the interest rates holding out until at least mid-2023, housing continues to remain a buyers market. This has given homebuyers more of a slice of the bargaining table in terms of determining selling prices.
Buyers have been conditioned into believing it is now a buyer's market," says Jonathan Broekman, Principle at Homes of Distinction. This means that determining a fair market value is a major priority in attracting buyers to your home. "It's imperative that sellers are aware that buyers have spent the time and done their own research. The best way to sell your home within a good time frame is to set realistic price margins."
Buyers, especially within the age group of 25 - 40, are savvy investors who pay close attention to market trends in order to ensure that they make the right decision.
The Demand for affordable housing
With the average selling price of homes reaching almost R1,3 million in 2021 (and an increase of 2% from 2020), the trend is certainly clear. The affordability of homes in South Africa is clearly dwindling. This follows off the trend that on average renters are paying between R7000 - R12 000.
Coupled with increased stress surrounding job security, and the growing cost of living, the demand for affordable housing is omnipresent within the buyer's sphere. This strengthens the case for ensuring that your home remains within an attainable pricing structure.
Well priced homes sell
The property market remains a dynamic and stable environment with great activity within the housing market provided the price is right. In fact, sellers are experiencing that if they follow comparative market analyses and set prices to values similar to homes in their neighbourhood, they can sell their homes in a little under two weeks on average.
There is a growing trend of agents out there who tend to lock sellers into sole mandates which have unachievable pricing structures. These overestimated prices set buyers up for disappointment when they receive low offers or little feedback from the market.
"There's no superlight-side, here," says Jonathan. "Buyers are going to be more astute than ever. If you're looking to sell within good margins then take the time required to do your comparables."
Analysing competition and the market
While the average housing price continues to rise, the level of inflation remains at a lower margin than in 2021. That being said, home sellers are advised to be aware of the growing number of properties entering the market. Special attention also needs to be placed on positive developments occurring in their neighbourhoods in order to gauge how far they can push their prices while still maintaining a fair cost.
Seeking advice from a well-experienced agent who has worked through a number of selling cycles is also advised. An experienced agent should have a keen understanding of market variables and will be able to advise the seller about accurate listing prices and provide a sound marketing strategy.
The fact of the matter is, there is no alternative to utilising a stringent comparison of both historical trends in pricing and the assistance of a market-entrenched agent who remains up to date with these trends.
Factors to consider
When it comes to selling your home at the right price there are five crucial elements you will have to consider before finalising your price range.
- The original price of your home does not determine the market value. Moreover, the price should roughly increase by the growth rate of the suburb.
- Don't let the price you wish to achieve dictate the asking price. If your home isn't selling, it's because the market is rejecting the asking price.
- Always ask your agent to give a substantive reason for their price valuation.
- Bank valuators may determine a price but that price is based on external factors. Buyers are concerned with the condition of your home.
- Pay attention to the price similar homes are selling at in your area. Always base your assessment on the actual selling price compared with the listing price.
Beyond that, pay close attention to market trends. What are people looking for and what are the biggest concerns for 2022? According to Jonathan, "Homeowners are particularly attracted to backup power solutions such as solar or other cost-saving alternatives. Security back-ups and comprehensive security systems remain a strong influencing factor."
To contact us, follow the link: https://www.homesofdistinction.co.za/
To contact one of our Real Estate Agents, follow the link: https://www.homesofdistinction.co.za/agents/
Author: LV Digital
