Looking at property market sentiment in Q2

If you are preparing to find property for sale in Nelspruit, you may be interested into the recent news regarding sentiment in the residential property market.

ABSA’ Homeowner Sentiment Index (HSI) was recently released for the second quarter of 2018, and unfortunately it revealed that there was a continued drop in positive sentiment in the market. Of course, this is done using a sample of consumers so it is not completely accurate in terms of how everyone may feel, but it does provide some good insight into how people are currently feeling in the market.

Looking at their previous releases, the second quarter of 2018 saw a 2% dip in sentiment when looking back at the first quarter. This may not seem like good news, but it was refreshing to see that the major dip seen between the end of 2017 and the start of 2018 was not repeated.

On a positive note, many of the consumers were upbeat about the chance to own a secure asset, and they felt that if they did spend money on property that they would be getting something that would continue to grow in value over the coming years.

The report also signalled that the effects of political uncertainty were still making an impact on the market. This, coupled with the land reform issue caused some tension and nerves across the board. There has been an attempt from government to clear up the issue with more in-depth explanations, but it may take a little more time for the concerns to ease.

The report showed lower positive sentiment when looking at buying, selling, renovating or investing in property and while many consumers still felt that it was better to buy than rent, there was also a fall in sentiment in this segment too.

The downward momentum in sentiment is not expected to stop soon though, with experts believing that it will continue for the rest of the year, with the increased financial pressure also beginning to take its toll.