Surveying houses for sale in Tokai as of today’s date, one can’t help but notice there is nothing available for less than R4 500 000. There is still a dire shortage of housing stock for sale, and a long queue of buyers desperate to get into the area, and yet the days of entry level values of R2 500 000 to R3 000 000 seem to be long gone.
Has the shortage of sellers meant that the few properties that come onto the market can ask a premium? Or is it just a coincidence that these large family homes of high value have all come onto the market at the same time? And will they sell at those prices?
It will be very interesting to see if this bubble of inflated asking prices pushes Tokai into the same league as Constantia. Or will optimistic sellers battle to sell and after months on the market be forced to accept much lower offers and everything settles back to prices as usual.
It’s been a long time since Tokai saw such dynamic trends. What is your property worth in today’s market? Contact area specialist Lisa Rowell for a no-obligation, free evaluation on 082 844 0800 or 021 794 0566.
The Tokai Property Snapshot of activity over the past four months compared to the same period last year, shows that the number of sales is down 60% and yet the average selling price has increased by 18%. But don’t get too excited – two high value property sales have skewed the figure into this ‘optimistic’ range. Interestingly the number of days on market has more than halved but with a similar differential between asking and selling price. The lesson here remains, do not overprice your house, even in a Seller’s Market.
Forest Glade is by far the best performing area in terms of R/m² – more than double the rest of Tokai. Imagine if it were turned into a full security estate, the values would sky-rocket!
Sustained high buyer demand looks to be cooling off, however. It seems that the effect of strikes, rising inflation, a couple of interest rate hikes, unfriendly bank managers and a general lack of confidence in the political arena has put a dampener on buyer activity.
What does this mean? There is a perfect storm brewing, low stock with lots of buyers still targeting Tokai. Be quick, sell now, before economic pressures force people to sell their houses and it swings back to a buyers market.
What is your house worth in today’s changing market conditions? Call Chas Everitt agent Lisa Rowell for an up to date evaluation on 021 712 5029 or 082 884 0800.