Slow economic growth and tight credit have put downward pressure on home prices in several of Pretoria's eastern suburbs over the past 12 months.
This three bedroom house in Meyerspark offers a tranquil garden, close proximity to a pool and a lock-up garage. It is on the market for R790 000 - click here to view.
“Buyers as well as sellers are affected by current economic conditions,” says Dr Willie van der Merwe, the RealNet franchisee for the sought-after suburbs around Pretoria's Botanical Gardens.
Although the number of sales remained constant, the value of registered sales in these areas showed a year-on-year decline of 30 percent in November, he says.
“Homes are also taking longer to sell, especially in the higher price ranges, and sellers have to lower their asking prices in order to attract buyers."
"On the other hand, he says buyers are struggling to obtain finance, and almost 44 percent of the sales concluded in the suburbs of Brummeria, Lydiana, Val de Grace, Murrayfield, Meyerspark, Silverton, Weavind Park and Nellmapius in 2013 fell through because buyers could not obtain the requisite home loans.
He says the median price of freehold homes sold in these areas in the past 12 months was R1.176 million, and that of sectional title townhouses was R764 000.
This two bedroom townhouse in Silverton offers 1.5 bathrooms and two reception areas. It is on the market for R620 000 - click here to view.
“But the high interest rates offered by cautious banks, especially to first-time buyers who had not saved a deposit, torpedoed many transactions. On the other hand, buyers with financial discipline and a record of paying their bills on time who had saved even small deposits had far fewer delays in obtaining finance.”
Van der Merwe says most sellers had to contend with offers that were on average 8 percent lower than asking prices, and properties generally spent longer in the market - 160 days on average compared to an average of 130 days in the previous 12 months. Only a third of sellers received offers matching their asking prices.
He says some properties with asking prices that were in line with current market conditions sold within a week of being listed.
Registration of transfers took between 38 days for straightforward transactions up to 176 days in cases where financing problems were encountered. The transfers of distressed properties offered through the banks’ assisted selling programmes took 75 days on average.
Van der Merwe says home buyers in his areas are typically between the ages of 25 and 44, while sellers are mostly older than 55 years. Most buyers who prefer townhouses are in the 25 to 34 age group.
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