The upswing is a reality - but do not start raising your home's price

For some two months now sales of residential properties in the Cape Peninsula – and, indeed, the whole Greater Cape Town area – have shown an unmistakable upward trend, said Lanice Steward, MD of Anne Porter Knight Frank – but, she added, this is once again leading to sellers trying to overprice. Anne Porter Knight Frank’s sales turnover rose by 40% in August and September as compared to the two previous months.

“In the 2006/2007 upswing,” said Steward, “many good potential sales never reached completion because sellers became unrealistic about the value of their properties. At all costs this must not happen again.”

This advice, she added, is particularly pertinent where a seller intends to buy another home.

“If such sellers sit back, fold their arms and wait for a higher price, they may in the end get it or a fraction of it – but by then the market increases we are now beginning to witness will have affected all prices. By January/February next year buyers could well find themselves paying 5% more on any home currently on the market.”

The recent upswing, said Steward, is likely to continue because ABSA, FNB, Standard Bank and Nedbank have all recently become open to discussion regarding 90% and 100% to value bonds – and although this applies mainly to the less expensive properties, this is boosting the market as a whole. FNB is offering 100% loans up to R2 million, Standard, ABSA and Nedbank have made similar changes in their loan to value criteria.

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