Recent statistics show that current levels of property for sale in the Helderberg area are at an all-time low.
Both for Freehold and Sectional Title property, current stock on hand is at between 30%-60% down on the same time last year.
What does this mean for the property market?
Like all markets, the real estate market is impacted by supply and demand. Demand is still exceptionally high, with buyers both locally, internationally, and from up-country, keen to purchase in the Western Cape, and especially in the sought-after Helderberg area.
With demand so high, and stock levels so low, the result is a “Sellers Market” where buyers are having to fight to secure the property they desire and are driven to making their best offers.
Add to that the fact that banks are hungry to provide home loans and are very competitive with their interest rates, and the result is very positive for property sellers.
“We continue to see upwards pressure on property values, especially in the areas where there is very limited supply, such as gated estates and upmarket areas”, says Steve Caradoc-Davies, co-Principal of Harcourts Platinum.
But why are stock levels so low? Many sellers would take their property to market if they could find another replacement property. The fact there are so few options to choose from means that sellers choose not to sell when they have nowhere to go.
How likely is this to continue? “It’s hard to say when the cycle will change”, says Caradoc-Davies. “But, certainly in the Western Cape, we anticipate that buyer demand won’t slow down. The market moves in cycles, so this can’t be sustained indefinitely – but stock levels are likely to remain at these levels until the new year at least, we believe”.
If you’re a seller, that’s great news. When using specialized strategies to make the most of the sellers’ market, you are likely to sell really well.
And for buyers, that means waiting for the market to change isn’t a great strategy – as property values are unlikely to drop. “In fact”, says Caradoc-Davies, “even though you will need to be competitive when making your offer to secure the property you want, it’s still a great time to buy. Banks are very competitive with their interest rates, and you have the ability to lock in a great rate now for the duration of your home loan”.
Historically, real estate has always been a sound investment in the Helderberg area. Just consider how property values have escalated over time. What seems expensive today is cheap tomorrow. With the market unlikely to change in the short term, it’s a good time to make the decision to buy or to sell.
