Up and up - Western Cape house prices rise in post-lockdown boom
PUBLISHED 5 NOV 2020
Just a few months after the end of SA’s severe lockdown the property market is showing signs of growth, dispelling previous fears that 2020 would see a sharp decline in home values.
As buying activity in the residential property market starts to pick up young buyers are leading the charge as they snap up value for money units in the R1.6 million and under category.
Let’s take a closer look at this positive trend and find out what it means for you as a prospective buyer or seller.
Good price growth in spite of the COVID economy
Property market pundits are having to rethink their former gloomy predictions which saw the residential property contracting by up to 15% in 2020. In fact, a mini buying spree has ensued with the lifting of lockdown restrictions and historically low interest rates.
Residential properties are staying on the market for just under 11 weeks on average - beating the long-term average of 13 weeks comfortably.
Younger buyers (those under 35) are jumping at the opportunity to become homeowners, and they now account for 43% of residential sales, up from 38% in 2019.
Homes between R750 000 and R1.6 million in value are proving to be the most popular - with three quarters of agents saying they are satisfied with sales in this category.
As young buyers enter the market, the rental industry which used to rely on that demographic is starting to feel the pinch. If you’re a prospective buyer, you may be able to secure a good price on a former rental property - especially if it has been vacant for several months.
Now may be the time to lock in an excellent purchase price and interest rate
Good news on the property front could mean that 2020 is the ideal time to buy your dream Cape Town home. With interest rates at their lowest level in decades and the market for affordable homes ticking upward, now could be the ideal time to buy a house or apartment and lock in significant savings on your bond payments.
To view our portfolio of competitively priced homes in Cape Town, contact the Cape Realty team today.
Image Credit: https://pixabay.com/photos/build-a-house-house-for-sale-4503738/