RE/MAX National Housing Report Q2 2024

The second quarter of 2024 was filled with anticipation as South Africans cast their votes on 29 May and celebrated the outcome of the Government of National Unity announced on 19 June.

“With so much going on this quarter, it can be expected that growth within the local housing market would remain subdued until there was greater clarity on the way forward,” says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.

Unsurprisingly then, the stats for the period April – June 2024 do seem to reflect muted growth.  When looking at registered sales from the Deeds Office, the national average sale’s price in Q2 2024 amounted to R1,134,512*, which is a 4.95% increase compared to the same quarter last year. This is slightly above the annual national house price inflation rate of 3.66% which was released by Lightstone Property as at end June 2024.

Commenting on this difference, Goslett explains that there were some anomalies in the housing report data which are presumably the result of a few big farm sales and commercial sales.

“Apart from those anomalies, average house price growth has been slow, which is reflected in the stats for our own network too. The RE/MAX SA network is up by roughly 2.42% in registered sales value compared to the same quarter last year,” he states.

However, when we look at live data on how the market performed during Q2, the average active listing price on RE/MAX amounted to R3,276,465 which is an increase of 7% compared to the same quarter last year.

“It is useful to keep in mind that registered sales totals essentially reflect sales that were concluded roughly two to three months prior to the date of registration, whereas the active listing prices are more reflective of what is happening within that quarter,” Goslett explains.

Adding to this, Goslett highlights that the average active listing price on RE/MAX in Q1 2024 had dropped to R2,754,249 which, in part, now reflects in the registered sales totals for Q2 2024.

While growth was slow year-on-year, when compared to Q1 2024, the RE/MAX SA network is 34% up in registered sales and 4.6% up in reported sales.

“What I interpret from this is that there is slow improvement within the local housing market each quarter. Now that elections are behind us, I remain hopeful that conditions will soon become more favourable and stimulate stronger growth within the property sector,” he states.

“The second quarter of this year has been an interesting one. Stock is starting to become an issue in some areas, possibly owing to the uncertainty around elections and sellers wanting to wait and see what happens. Compared to the same quarter last year, the number of listings on remax.co.za has dropped by 34%. When stock becomes limited, prices can begin to climb – on the condition that there is enough demand, of course. With all expectations pointing to a drop in interest rates in September, we may soon see affordability becoming less of a concern which could lead to more buyers in the market. If stock levels remain low, we might soon shift away from a buyer’s market into a seller’s market. With all this in mind, it will be interesting to see how the property market conditions change over the course of this year,” Goslett concludes.

Writer: Kayla Ferguson