IEASA and NAR host property update sessions

© Valerijs Kostreckis – 123RF.com

In addition to these, Tony Macaluso of the NAR ran the internationally accredited Certified International Property Specialist (CIPS) course, says Annette Evans, regional general manager of IEASA in the Western Cape.

At the update sessions, US property market trends were discussed, as market trends in South Africa do tend to follow those of other major countries in the world.

The median house price in the US is currently $234,000, which is 5,6% up on that of July 2014. In SA - according to the FNB House Price Index for September 2015 - values rose by 6,8% year-on-year, but for the first nine months of 2015, the average year-on-year house price inflation was 5,7%.

Short supply

"Stock of existing homes for sale in the US are, as in SA, in shorter supply than normal, with the US figures showing that they are 4,7% down on that of the previous year. Basic economic rules apply and when there is a shortage in supply and high demand, prices tend to increase. Cash sales have increased in the US, and in SA, most agents are reporting increases in cash buyers too," said Evans.

While properties typically were on the market for 42 days in the US, homes on the PropStats database in the last year have taken on average 77 days to sell. While these figures are Western Cape based, this is a good example of what is happening in the market. This figure is better than the previous year, where homes were taking an average of 91 days to sell.

In some cases in the US, properties were on the market for less than a month, and this is happening more and more in the Western Cape in certain areas where homes are in high demand and are priced correctly. Some homes are reported to have sold on the day they were listed.

The average selling price of properties in the areas covered by PropStats from October 2014 to September 2015 is R3,027m, and October 2013 to September 2014 is R2,6m - a 7,87% growth year-on-year.

National average

The national average house price is much lower, according to the July Absa House Price Index, which lists the average nominal value of homes in each of the middle segment categories in June 2015 at R830,000 for small homes (80m² to140m²), R1,224m for medium sized homes (141m² to 220m²), and R1,892m for large homes (221m² to 400m²).

"The property update sessions and CIPS course were run with the intention of strengthening ties between agents in different countries, allowing them to do business across borders with a full understanding of other markets," said Evans.

It is because of this globalisation that many South African estate agents will be attending the NAR conference which is will run from 9-17 November in San Diego, California.