16 Jan 2014
The report reveals the average house price for 2013 rose by 6.8 percent compared with the average price for 2012, a slight slowing in growth on the revised 2012 average house price growth of 7.1 percent.
In real terms 2013 showed a slightly lower rise of 0.8 percent compared to 1.3 percent in 2012, however, 2013 saw the second successive year of slight positive real house price growth following four prior years of average real price decline.
According to report writers, John Loos, FNB household and property sector strategist, and Theo Swanepoel, property market analyst, the average price of homes transacted was R891 976 for 2013 (R835 480 in 2012). In real terms, the FNB House Price Index remained well-above levels of a decade ago, with the real price average for 2013 at 42.6 percent above the real average price for 2003. However, compared with last decade’s real average price peak reached in 2007, the 2013 average real price was still -18.5 percent lower. The report reveals the average house price for 2013 rose by 6.8 percent compared with the average price for 2012 - a slight slowing in growth on the revised 2012 average house price growth of 7.1 percent. In nominal terms, the 2013 average price was 145.2 percent higher than the 2003 price level, but only 19.3 percent above the 2007 level, they explain. “Therefore, the 2013, real price levels remained far above the levels of a decade ago, but still do reflect a significant cumulative downward “correction” since 2007,” according to the report writers. According to Berry Everitt, managing director of the Chas Everitt International property group, the average price of a first-home buyer has risen by about 7 percent to around R700 000 in the past year. However, while this is creating urgency for first-time buyers to get into the market while they can still afford to do so, they must take care not to let anyone pressure them into making snap decisions about their purchases, or too many compromises about the type of home they want.
The report reveals the average house price for 2013 rose by 6.8 percent compared with the average price for 2012, a slight slowing in growth on the revised 2012 average house price growth of 7.1 percent. Everitt cautions that if they do, these buyers are likely to end up in a home they’re unhappy with or which really does not meet their needs, and will shortly have to move again, with all the stress and expense that entails. “Buyers should be looking at keeping their first home for at least seven to 10 years to even out the ups and downs in the property market, and to ensure that they will be able to realise their home’s best value when they do decide to sell.” He says they will need to think carefully about what their housing needs might be during that time period before they go house-hunting. If they are planning to start a family, for example, they will need a home with room for children and probably some garden space. Alternatively, if they anticipate that they will soon have to accommodate an ageing parent, they should perhaps be looking for a single-level home with an attached granny flat or perhaps a garden cottage. “Whatever their specific needs may be, it will be well worth their while to seek out the home they think will best meet these needs, within their current affordability limits.” Meanwhile, agents report steady sales in 2013 at Yzerfontein, the attractive Cape West Coast village 87 km from Cape Town. According to Marijanne van Nieuwenhoven, the Rawson Property Group’s Yzerfontein sales agent, the market was so steady that she sold 22 properties in 2013 and expects 2014 to be positive. Van Nieuwenhoven says 40 percent of Yzerfontein’s residents are retired people and as many as 60 percent of homes are owned by people who use them only for holiday and weekend visits.
Although this vacant plot offers no sea view, it is a good locations with views of the farmland and fynbos from the back of the property. Measuring 805 square metres, it is priced at R450 000.
“Most of our homes are fairly substantial, with a large number being double storey buildings.” These have between three and four bedrooms and tend to sell from R1.2 million to R4 million with the average sale price recently not that far off the R2 million range while plots have averaged R400 000. She says the lowest priced home currently available is priced at R1.195 million while plots are priced from R320 000 and beachfront plots at R1.8 million. Those wishing to build for themselves will find a good selection of plots to choose from and local building teams, with labourers and artisans drawn mainly from Darling with whom the town has close connections, who are skilled, reliable and not too expensive. Construction prices of new homes are usually from R6 000 to R10 000 per square metre, she explains. According to local estate agents, Yzerfontein felt the effect of the recession less than most Cape West Coast towns, which were some of the hardest hit in the whole of the Western Cape. Home prices fell by up to 10 percent but they have now been stable for at least two years and the long awaited upturn will take place from mid-2014 onwards, notes van Nieuwenhoven. –Denise Mhlanga