Gauteng remains the most price-realistic of the Major Metro regions
The average time a home remains on the market prior to sales continues to rise on a national scale.
Looking at different regional housing markets, Gauteng seems to maintained a relatively well balanced position and appears to be the most price-realistic. Average times on the market prior to sales in Gauteng are averaging around 12 weeks and 4 days.
Ethekwini and Nelson Mandela Bay in the Coastal Metro Markets, recently appeared less price realistic.
Here some key points to consider
- The average time of homes on the market prior to sales continues to rise gradually from 15 weeks and 4 days to 15 weeks and 6 days in the 3rd quarter 2017 FNB Estate Agent Survey.
- In the 3rd quarter of 2017, 93 per cent of all sellers dropped their asking price.
- The drop in asking price increased from -6.8% in the 2nd quarter of 2017 to -9.8% in the 3rd quarter survey.
- Namibian market that was once booming is now struggling. The average time on the market in Namibia had risen to 24 weeks and 2 days in compare to the previous 15 weeks and 6 days.
- There has been a noticeable decline of viewers per show house going from an average of 14.42 viewers per house for the 4 quarters of 2013 to a 10.49 average in 2017.
- 8% of agents cited “stock constraints” as an issue in their areas in the 3rd quarter of 2017 which is much lower than the 24% of early 2015.
In recent years, the housing market has gradually drifted away from equilibrium on a national scale.
A time on the market prior to sales of approximately 12 weeks is considered market equilibrium. Between 2014 and 2016, the estimated average time has been moving at levels around 12 weeks making this a time with mild positive average price growth.
Throughout 2016 and 2017, the market has hugely drifted away from equilibrium with the average time on the market shifting up to 15 weeks and 6 days. The shift away of equilibrium is driven by weaker demand from buyers.
With many regions drifting away from equilibrium, Gauteng region has been keeping a solid position remaining very near to an average time of 12 weeks on the market prior to sales.
