Bold Realty bucks the Market
PUBLISHED 16 MAY 2017
The Port Elizabeth property market can very easily be seen as a buyers' market. The key indicator of a buyers' market is a higher level of stock available as opposed to a fewer buyers. The imbalance between these two factors of supply an demand means that there is more stock than there are buyers which are both willing and able to buy.
Port Elizabeth has always been a conservative city when it comes to buying property. Various commentators have ventured personal opinions, which have varied from it being the estate agents who do not push prices etc.
Clinton Begley, principal and estate agent at Bold Realty believes that it is a cluster of factors which makes Port Elizabeth appear to be conservative. Begley sees the following factors which mitigate against higher average prices in Port Elizabeth suburbs,compared to similar suburbs elsewhere:
- Port Elizabeth is a factory city, whereas the company head offices are in Gauteng, Cape Town or Durban;
- Port Elizabeth has seen the effects of company's scaling back like when Ford closed;
- The average salary in Port Elizabeth is below the average in Johannesburg or Cape Town, which affects affordability;
- Port Elizabeth people are not as image driven as major metropoles so they are less driven to buy to impress
The conservative nature of Port Elizabethans has intensified the effect of the buyers' market but because we were more conservative in the good time, the impact has not been nearly as catastrophic as the crash in 2008.
Begley is of the opinion that well trained and innovative estate agents are able to adapt to any market and that at BOLD REALTY, sales have in fact been strong among well priced stock, while the market has punished properties coming in too high. This has seen agencies whose listing approach is to simply list at excessive amounts to get listings, taking a brutal beating in the market. This effect of listing staying on the books long has meant that many of these estate agents and their agencies have begun to feel the onset of a biting sales winter. In a desperate bid to saw up cash flow; many have thrown themselves into more paid marketing and advertising. Unfortunately, treating a symptom is not a long term solution and with decreased sales, suffocating with no sales and hemorrhaging marketing costs these agents and their clients take loss after loss. For the hapless seller whose property has through their own demands and/or the estate agent's lack of price counseling abilities wandered into the market far above value; for them the prospect of selling below real value is a very real opppotunity.
How long will this market last? There are factors like political situation, foreign exchange, sentiment etc which many say hints at the fact that this winter will be cold and protracted. In such a market you will need a agent who knows their craft, knows their numbers, knows how to guide their client and is armed with proven strategies to overcome the market.
If you are thinks of buying or selling; you need a Bold Partner. Call or e-mail now!