INDICATORS POINT TO BIG IMPROVEMENT IN 2010

Reports from estate agents throughout the Cape Peninsula are confirming that 2010 is taking on a far more promising look than was ever seen in 2009.

Lanice Steward, MD of Anne Porter Knight Frank, has been one of those to testify that the new year has started with a bang.

“The numbers attending our show houses are double or treble what we saw for most of last year,” she said.  “We have been getting between 30 to 50 visitors on show days in the first few weeks of 2010.  Some show houses last year routinely attracted less than three visitors on a show day.”

At at least two show houses, she said, three offers to buy had been taken on the same day.

Particularly encouraging, said Steward, is the increased activity at the bottom end of the market.  Although APKF tends to focus on the middle and upper segments, they have always found that action in the lower priced property brackets has a push-up effect on the whole market, those selling here often upgrading to more expensive areas.

Steward warned, however, that sellers should not become unrealistic in their pricing.

“Although we are now for the first time in almost two years seeing an end to price deflation (i.e. small increases), this was inevitable after such a long period of downturn and it does not mean that we are back into a Bull Run.”

Steward agrees with John Loos, FNB residential property economist, that by the end of 2010 we will see an 8% average increase in property values.  However, she said, the significant price rises will not take place until mid-year.

For further information contact Lanice Steward on 021 671 9120 or email lanice@anneporter.co.za.