Following the recent announcement of a 0,7 per cent drop in GDP in the second quarter of 2018, South Africa has fallen into another technical recession.
By definition, a recession occurs when a country shows two consecutive quarters of economic decline. After the 2,2 per cent drop of the first quarter of 2018, many economists predicted that minimal growth would reflect in the second quarter. Sadly, their predictions fell shy of the truth.
Adrian Goslett, Regional Director and CEO of RE/ MAX of Southern Africa explained that during a recession, unemployment increases and spending power declines. In the world of real estate, this translates into a buyers’ market where the supply of properties outweighs the demand from buyers.
“While this does not spell good news for sellers, buyers who have planned for the possible recession will be able to purchase a property at much lower prices,” he said.
“My advice to sellers over the next few months is to be more rigorous in their search for a real estate agent than ever before. In trying markets like the one we are currently facing, sellers will need to partner with the best in the business to ensure that they get the right price for their property,” Adrian concluded.
• Source: RE/ MAX
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