Top reasons why people are selling their homes right now

According to the latest Residential Property Barometer by FNB, the trend of semigration appears to be slowing down, although it remains significantly higher than the long-term average.

The barometer indicates that sales linked to relocation within South Africa, known as semigration, rose from 11% in the fourth quarter of 2023 to 13% in the first quarter of 2024.

While semigration has decelerated in recent months, the survey findings indicate that it remains above the long-term average of 9% since the survey question was first introduced in the fourth quarter of 2007, stated FNB.

Conversely, sales driven by financial pressures decreased from 25% in the fourth quarter of 2023 to 19% in the first quarter of 2024, aligning closely with the historical average of 18% since 2007, after consistently exceeding this level for most of 2023.

The rate of upgrading, however, has slowed from 15% in the fourth quarter of 2021 to 11% in the first quarter of 2024, attributed to the tightening cycle of interest rates.

Emigration-related sales remained steady at 8%, consistent with the long-term average since 2007, significantly lower than the peak of 18% observed in 2019.

Semigration, particularly towards the Western Cape, is expected to gain momentum as homeowners seek refuge in areas perceived to be more stable, especially amidst escalating cost pressures from rising municipal rates and electricity tariffs.

FNB's property insights analysis for 2024 by John Loos offers some optimism, noting a mildly improving economic landscape that could bode well for the commercial property sector. However, any tangible impact is likely to materialize only in 2025.

Loos further suggested that property investment might see an uptick due to several economic factors, including potential interest rate cuts and lower inflation, with investors potentially experiencing a more favourable 2024 compared to previous years.

Nonetheless, he cautioned that the full improvement might only manifest in 2025 figures, given the various economic-property market dynamics and existing risks.