Property market sentiment still falling

When you plan your entry into the property market, whether you are selling or buying property for sale in Lydenburg, it is important to know the current sentiment as it can help you decide what approach needs to be taken.

Unfortunately, for the second quarter of 2018 there was a continued fall in positive sentiment. This was confirmed in ABSA’s Homeowner Sentiment Index (HSI), which provides an update on what the feeling is amongst average consumers in the residential property market.

Taking a look at the feeling on an overall basis, there was a drop from 75% to 73% in the second quarter. This signalled a bit of a slow down on dropping sentiment, with the fall between the last quarter of 2017 and the first of 2018 having been much larger.

Instead of focusing on the doom and gloom, there was a positive feel among consumers that purchasing property still allowed them to take ownership of a secure asset – and that their investment would continue to grow in value in years to come.

Looking at some of the major concerns that led to added negativity, the political situation continued to dominate. The uncertainty from earlier this year continues to be felt, while the land reform issue is something that is still fresh in the mind of many, despite government doing their utmost to clear up concerns.

The survey is subdivided into five sub-indices, however, the drop in sentiment is seen across the board there too. This looks at selling and buying property, as well as dipping into property for investment and renovating. The last sector inspects the feelings around buying versus renting property.

Looking ahead to the rest of 2018, there was no expectation that things would change though, and with added pressure to household finances, things could get a little tougher.