The third quarter 2012 FNB estate agent survey‚ completed in the month of August‚ continued to lack strong direction‚ but it did point toward a mildly improved residential market following the previous survey‚ FNB said in a statement on Monday.
Typically‚ the third quarter survey returns a seasonally weak result‚ being undertaken when winter is still in full swing. However‚ this year’s August survey was completed very shortly after a surprise half-a-percentage point interest rate cut by the Reserve Bank (SARB)‚ and this small stimulus may have played a small positive role‚ the bank said.
The third quarter residential demand activity indicator rose mildly from the previous quarter’s 5.87‚ to 6.11 (on a scale of 1 to 10).
“Other indicators emanating from the survey suggest that there was a small improvement in the balance between demand and supply in the residential market‚ from the second quarter to the third quarter of this year‚ something that is not only driven by demand slowing but by availability of stock for sale as well‚” the bank said.
“The most important indicator in this regard is the estimated average time that a property remains on the market prior to sale. This average time dropped from 17 weeks and four days in the second quarter to 15 weeks and six days in the third quarter‚ it added.
“In addition‚ agents report a further decline in the percentage of sellers being required to drop their asking price to make a sale‚ from 87% previously to 84%. However‚ we have not seen too much impact from the July interest rate cut in the FNB house price index.” - I-Net Bridge