Sentiment drops for yet another quarter in property market

Sentiment in the property market has been dwindling in 2018, and that remains that case in the second quarter, so if you are currently assessing property for sale in Mbombela, it may be worthwhile checking out how the average consumer is feeling at present.

You certainly shouldn’t be put off by the news, but ABSA’s Homeowner Sentiment Index (HSI) was recently released and provides an update on what the average consumers are feeling in regards to the residential property market.

On the overall basis, positive sentiment was down another 2% to 73% in the second quarter of this year. However, what was a little concerning was the fact that sentiment had dropped by over 10% nationally since late 2017.

Taking a look at some of the main positive points; many consumers were still positive about the fact that buying property allowed them to own a secure asset. They also pointed to the fact that they saw their investment as one that would increase in value going forward.

Some of the main contributing factors to the negativity came from the current political climate. The uncertainty at the start of the year certainly made a major impact, as well as the land reform issue, which has continued to create some nervous tension despite attempts from government to provide more clarity on the issue.

The survey digs deeper into a range of aspects, including selling and buying property, investment in property and willingness to renovate properties. It also assesses the feeling around buying versus renting. In all aspects, positive sentiment was down.

The report provided an outlook for the rest of the year, and unfortunately there is no expectation for the decrease in positive sentiment to stop just yet. Times are tough at present, with fuel prices continuing to increase along with taxes, which means that household budgets are tight, and this certainly will have an impact on the property market.