House sales growth is set to remain muted in the second quarter of 2024. (Picture: Matt Rourke/AP (File)
There was muted growth in the housing market in the second quarter as owners awaited the outcome of the national election, but listing prices as measured by one large estate agency were up 7%, indicating improved confidence in the market.
RE/MAX of Southern Africa CEO and regional director Adrian Goslett said it was no surprise that the housing market would remain subdued until there was greater clarity on the way forward,
Registered sales totals essentially reflect sales concluded roughly two to three months prior to the date of registration, whereas active listing prices are more reflective of what is happening within that quarter, Goslett said.
Meanwhile, the average active listing price for the first quarter had dropped to R2 754 249 which, in part, now reflected registered sales totals for the second quarter.
Deeds Office statistics for April to June, 2024 showed the national average sales price was R1 134 512, a 4.95% increase over the same quarter last year. This was slightly above the annual national house price inflation rate of 3.66% – this figure was released by Lightstone Property as at the end of June, 20024.
“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,” he said.
The weak residential market conditions were also reflected in buildings statistics released by Statistics SA late last week.
Statistics SA said the value of building plans passed fell by 13.4% during the first half of 2024 compared with the first half of 2023, with decreases reported for residential buildings (-R3.57 billion), non-residential buildings (-R1.88bn) and additions and alternations (-R1.81bn).
The value of buildings completed fell by 17.2% in the first half of 2024, over the same time a year before, with decreases reported for residential buildings (-R2.98bn), and non-residential buildings (-R1.80bn).
Goslett said apart from some anomalies in the housing report data which were presumably the result of a few big farm sales and commercial sales, average house price growth had been slow.
This was also reflected in the statistics for their own network – the RE/MAX SA network was up by roughly 2.42% in registered sales value, compared to the same quarter last year.
However, the average active listing price on remax.co.za amounted to R3 276 465, an increase of 7% compared to the same quarter last year.
“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 the 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 had dropped by 34%.
“When stock becomes limited, prices can begin to climb – on condition that there is enough demand, of course,” said Goslett.
The value of building plans passed fell by 13.4% during the first half of 2024 compared with the first half of 2023, with decreases reported for residential buildings (-R3.57bn), non-residential buildings (-R1.88bn), and additions and alternations (-R1.81bn).
The value of buildings completed fell by 17.2% in the first half of 2024, over the same time a year before, with decreases reported for residential buildings (-R2.98bn), and non-residential buildings (-R1.80bn).
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