2010 a good kick off for the property market

I think many would agree that this year kicked off with a lot more market activity. When looking at our sales figures for January the network easily exceeded the sales figures of any month in 2009.

Currently most people in the industry are covering the market statistics released by the banks looking for recovery clues. During the last two months the information published paints an interesting picture.

On the 1st of February, John Loos from FNB released their House Price Index. According to the report. In April 2008 the property value growth dipped below 10% per annum, everybody will agree that after that things got a lot tougher. But very encouragingly they reported the first positive growth in November 2009, and it increased in momentum during December and January.

On the 2nd of February, Johan Botha from Standard Bank released their Residential Property report. They also reported a welcome trend in terms of property values. They also report a recovery, and expect property values to turn positive from April 2010 onwards. With a positive growth rate of between 3% and 5% projected for 2010.

On the 10th of January, Jacques du Toit from ABSA released their ABSA House Price Indices. ABSA forecasts nominal growth of between 6% and 7% for 2010. With the positive effect of the lower interest rates set to diminish towards the end of the year. With economic growth projected at 2.5% a steady recovery is expected.

The improving market conditions are a lot more visible in the motor industry, whose trends closely resemble trends in the real estate industry. In her “Motor Alert” overview, Dalene van Dyk from Standard Bank reported the best year on year improvement on record, as 31% more passenger cars were sold measured against January 2009. Even though January was exceptionally high, they expect a steady increase for 2010 measured against 2009 levels.

I think everybody can agree that the current information is very promising and we can expect that 2010 will be the recovery year. We will be keeping an eye on the figures as they become available, but the early indicators points to a much better year. Let’s be ready to take the opportunities that come our way.

Article from: www.realty-1.co.za