Johannesburg - Economic instability and short- and medium-term market fluctuations has impacted on home owners selling their properties to upgrade.
This is according to Richard Gray, Harcourts Africa CEO, and is based on FNB’s estate agents survey for the second quarter of 2016.
This survey indicated “upgrade-related selling” accounted for 12 percent of total home selling. This represents a decline from the 14 percent of the previous quarter, and is lower than the 20 percent high reached late in 2013.
“Although it is difficult to compare the economic climate of 2013 to our current situation, it is nevertheless a large decline in a relatively short space of time,” says Gray.
He adds FNB’s figures show that home owners are highly sensitive to the market and susceptible to economic and financial indicators.
An array of international and local factors have influenced consumer confidence with many South Africans feeling weary about the state of the economy and unsure what the state of affairs is going to be over the medium to long-term, Gray notes.
Consumers under financial strain have undoubtedly felt the pressures of fluctuating markets, rising food costs and fuel price increases. “These increases have an affect on households expendable income and clamping down on unnecessary spending is a trend that is going to continue over the coming months.”
IOL