Current sentiment in the residential property market

If you are entering the property market to sell or buy property for sale in Capricorn, you may find it interesting to take a look at the current sentiment in the residential property market.

This is measured every quarter with the ABSA Homeowner Sentiment Index (HSI) and in the most recent release of this, there continued to be a downward trend in positive sentiment across the board, which was not ideal news.

The survey makes use of a sample of consumers in the residential property market, and across South Africa there remained cautiousness as positive sentiment fell by another 2% in this quarter. From sitting at over 80% towards the end of 2017, sentiment has now fallen to 73% overall, which is a sharp drop.

The survey pointed out that one of the main positive points that arised was the fact that consumers still felt that owning property allowed them to have a secure asset that would continue to increase in value. On the negative side of things, the political situation and land reform issue remained the standout concern, and despite attempts to clarify this in recent months, many people are still on edge regarding this.

The results of the survey dive even deeper, looking at buying, selling and investing in property as well as renovating and the sentiment regarding buying over renting. Every sector saw a decrease in sentiment.

Unfortunately, the rest of 2018 doesn’t really offer much hope of this turning around, with experts predicting that sentiment will continue to fall for the remainder of the year. There is also the continued rise in fuel prices as well as higher taxes, which is putting strain on budgets all across the country.

Buyers still believe that there are bargains in the market though, and many consumers still have the desire to own property, so despite the sentiment, there is still opportunity in the property market.