The rating ticked up from 5.3 to 5.8 in 1Q24, indicating a recovery of some sort after what seemed like a bottoming out between 2Q23 and 3Q23.
Despite this improvement, the current rating remains below the long-term average of 5.9 and significantly lower than the peak of 7.1 in 4Q20.
Regionally, the Eastern Cape showed the strongest rebound, rising from 5.0 to 5.8, while the Western Cape maintained the highest activity level, increasing from 6.0 to 6.5. Gauteng and KwaZulu-Natal also saw gains, climbing from 5.0 and 5.7 to 5.5 and 5.9, respectively.
The increase in buying activity is reflected in the reduced time it takes to sell a property, with the average time on the market dropping from 81 days to 76 days.
However, KZN saw an increase in the average time to sell, up by 11 days to 82 days.
These positive developments have somewhat boosted agent morale, with the proportion satisfied with current market conditions rising from 49% to 56%.
Nevertheless, lingering concerns about affordability, political uncertainty, and job security persist among agents.
Looking ahead, only 38% of respondents anticipate increased activity in 2Q24, reflecting ongoing apprehensions.
Regarding house price inflation, South Africa's market remains relatively stable, though sellers may anticipate some relief due to increased demand in the coming months.
FNB's House Price Index growth decreased slightly from 0.9% to 0.7% in February, attributing the modest growth to elevated living costs, borrowing expenses, and political uncertainties.
FNB predicts that subdued levels of house price appreciation will persist in the short term, attributed to high living and borrowing costs and ongoing political uncertainty.
However, they maintain a view that the house price cycle has bottomed out.
Anticipated declines in inflation and borrowing costs in the second half of 2024, coupled with potential employment gains, are expected to stimulate demand, supporting a moderate uptrend in house prices over the medium term.
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