WHAT'S DRIVING RESIDENTIAL SALES?
Category News
Good question! What are some possible answers? The need for a roof over your head. Making the best use of a housing subsidy. Buy to rent. Downsizing. Affordability. Emigration. Relocation, for better security, accessibility to work, school, medical facilities, etc. Family adjustments. Upgrading. It can be any number of factors.
The most popular one we come across, is the need to downsize. The empty nest syndrome. This is where the children have moved on, be it through marriage, careers, relocation, etc, and it is only the parents that are left behind. The once perfect family home has become too big and admittedly, too expensive to maintain and/or sustain. This is the point where sentiments and emotional ties have to be severed, and harsh reality creeps in.
A decision has to be made, and quite quickly.
In a recent FNB estate agent survey, it was highlighted that as much as 21% of sellers fall into the Family Adjustment category, ie. where the sellers are looking for a smaller home, as a result of their advancing age, health reasons, where the children have moved away, or purely for financial reasons.
Financial constraints, limitations and affordability are other contributing factors adding to the increase in residential sales. With the economic climate currently looking rather frail, the high rate of unemployment, fewer job opportunities, etc., many properties have entered the market as distressed sales. This is where sellers are prepared to let their properties go before foreclosure by the banks, and also to salvage their financial credibility. In addition, it gives them an opportunity to look for cheaper and affordable accommodation, or rent as an alternative option.
Another contributory factor driving residential sales comes from those wanting to upgrade. These are the households that are relatively more financially solid and are not affected, or not as much affected, as those that are pressurised financially. Upgrading can also mean relocation for any number of reasons as stated earlier. With political changes and the ever-evolving global market, opportunities to emigrate cannot be ignored. Therefore, opportunities for a supposedly better living environment, and better employment opportunities abroad, may also be considered an important contributory factor to the escalation of residential sales.
Lastly, the attraction of overseas investors looking to inject large sums of money in property, especially on the coastal and upmarket locations, is enough reason for most home owners to release their properties for sale so that they can grab a slice of that lucrative sector of the property market and make a quick profit.
These are just a few factors driving residential sales. One of the most common questions asked by prospective buyers is: “Why is the owner selling?” If your property is currently on the market, “Why are you selling?” Your reason can be as unique as anybody else's. It need not be any of the reasons stated in this article.
That’s it for this week. If there are issues you would like covered in this column, I would like to hear from you. In the meantime, should you have any queries or questions relating to real estate matters, do not hesitate to give me a call at Acutts (Phoenix/Umhlanga Elite).
Yeggie Naidoo (C.E.A. – NQF4) is a property consultant at Acutts (Phoenix & Umhlanga Elite), situated at Shop 9, Starwood Mall, 3 Andromeda Street, Starwood, Phoenix. He writes in his personal capacity. You may write to him on his e-mail yeggienaidoo@acutts.co.za or you may call him on 079 7044 014, or check out his properties by visiting www.acuttsphoenix.co.za. Refer to the Acutts (Phoenix) advert for more contact details.
Author: Yeggie Naidoo