In property, as with everything else, there are times when the price and conditions are too good to refuse. This is called a buyer’s market, and that time is now for South African property buyers!
What is a buyer’s market?
As the name implies, a buyer’s market is a time when the market is skewed in favour of the buyer. The property market is affected by supply and demand in the same way all other industries experience this. When there are many more people selling than there are people buying, the supply is higher than the demand. When that happens homes stay on the market for longer, with the prices either staying the same or dropping. It is highly unlikely for property prices – in general, although there are always exceptions – to go up.
For buyers, this means more affordable options over a longer period of time. If there is a property you are interested in, but you cannot afford it yet, this gives you as a buyer – and other buyers as well – a chance to save up. Another benefit of the buyer’s market is that as a buyer, you can often use this opportunity to negotiate a better, lower price.
Some factors leading to a buyer’s market
One of the relevant factors leading to a South African buyer’s market, in particular, is the weakened economy. With the Rand weakening and a range of other economic problems, our country is facing– like the fear of another recession – people are hesitant to spend money and fall into debt. Property is one of the greatest expenses that lead people into debt. This naturally leads people to look for alternatives more often. That is why there has been a sharp increase in the number of families expanding their homes so that more family members may move onto the property, which is far cheaper than buying or building a whole new home.
Along with South Africa’s economic instability, political instability also plays a role. More and more people are growing dissatisfied and emigrating to foreign countries. All of these emigrants, if not leaving their home to somebody, need to sell their homes, and often they end up moving before the house can be sold. Again, this leads to a greater supply of homes and lower demand.
We are living in a buyer’s market, so there’s no need to wait for your ship to come in anymore. You can have your dream home today! Contact us at JNK Properties and we will help you find the perfect home in this perfect market.