May and June residential property sales likely to indicate changes in market

May & June residential property sales likely to indicate if changes in the market are temporary or long term.

The months of May and June will quite possibly give a clear indication of where the Cape Town residential property market is heading, says Rowan Alexander, Director of the Northern Suburbs estate agency Alexander Swart Property.

“December, January and February were all months in which the Cape’s more successful agencies saw encouraging sales figures,” says Alexander, “and many people ascribe this, at least partially, to the increase in optimism that followed the election of Cyril Ramaphosa as ANC President.

“Then in March a slight slowing down became apparent and in April it began to look for much of the time as if home buyers had almost disappeared.

“This may have been due to the many public holidays and school holiday which historically have always caused a slowdown in home sales.  If, however, there is now an increase in uncertainty in the market and a further tightening of household budgets (as many commentators on the economic scene have predicted) the May figures will reveal this and will probably indicate the trend for the rest of the year.”

Winter at the Cape, says Alexander, has for some agencies always been a  time of slower sales, but Alexander Swart Property has never found this to be the case.  However, they have found that economic trends always impact on the residential property market.

“As always, I am confident that Cape northern suburbs residential property will continue to show an upward trend with values increasing from 7 to 9 % per annum.  May and June will, I think, reveal if the growth trend will be significantly weaker in 2018 than it was previously.  Whatever the conclusion, Cape property will remain a very sound investment.”

For further information contact Rowan Alexander on cell phone number 082 581 3116 or by email rowan@asproperty.co.za.