Sa: buyers market 'hotting up'

Prospective homeowners dithering about when to enter the property market should jump in now as house prices stagnate, says Absa's senior property analyst Jacques du Toit...

The growth in house prices had fallen to its lowest level in seven years, so buyers were unlikely to find better time to make their move, Du Toit said recently: "It's definitely become more of a buyers' market because prices are not increasing that fast any more. Sellers are finding it much more difficult to sell their properties, and the gap between the asking price and the eventual selling price will definitely open up.

"Although residential property is not cheap, with the average house now costing about R964000, prices are likely to remain at this level this year before running again next year.I think 2008 will see the bottom of the property cycle."

Neville Schaefer of Trafalgar property managers urged caution: "I wouldn't buy now because the interest rate outlook is worrying," he said. Schaefer believes house prices could stop their gradual slow growth and go into reverse. I think interest rates will go up this month, and there will be a lot more people in trouble. I think there may be a few forced sellers in distress. Prices are not going to move up dramatically between now and the end of 2008, so why jump in now?"