What can we expect from the property market in 2022?
The following appeared in a recent national article where the CEO's of the top 5 real estate companies were asked to reflect on 2021 and give their predictions for 2022.
First up is Richard Gray, the CEO of Harcourts, who provides his interpretation of 2021. "The continued record-low interest rates have meant that the residential property market is still very buoyant. Although unemployment remains concerningly high, buyers are taking advantage of being able to finance their property purchases at more affordable levels. This has resulted in stock shortages in many areas of the country.
"Well-priced properties are, however, selling very fast. New developments are launching to pick up the demand. The demand side has been interesting ... we have seen more demand for property in the higher price brackets which previously lagged in the middle to lower priced properties."
Overall Harcourts had a very successful 2021, with every calendar month realising a sales increase on 2020. "2021 was our best year ever in terms of sales at Harcourts. It was 50% better than our previously best year!"
As most in the industry expect, interest rates will continue to edge up. Gray believes we can expect another 0.75% increase over the forthcoming 12 months, which might see a slowing of buyer demand. "However, this won't be significant. As more development stock enters the market, the shortages will diminish in certain areas, which will make it less of a seller's market."
"I really believe that 2022 will, overall, see a continuation of 2021 trends, but in these unusual times, it would be remiss of me not to add that this is assuming there is no major external event."
16 May 2022
Author Richard Gray - CEO of Harcourts South Africa
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