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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.

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