I am sure that many real estate agents have experienced some downturn symptoms in their markets and the common thread seems to be the "wait and see" approach of investors , some testing the waters with rediculously low offers.
What will happen in the next few months , well if we had a crystal ball it would make it far too predictable , almost to the point of boredom.
What we can forecast is that an upturn is in the pipeline , and timing in this market can be critical.
Further pressure on the economy by credit tightening , rate effect taking hold and inflationary pressure on disposable incomes , will see a market with stock supplies of listed property increasing , forced sale scenarios and possibly short term reductions in selling prices by a few percentage points ( predictions of 4-6% decline in real property prices in certain sectors of residential)
Listed prices are definitely becoming more realistic and overpriced properties will not sell in this climate.
Lower end and higher upper end properties in East London seem to still be quite bouyant , but the large bit in between ( R1 -R1,8mil) is rather flat.
So what can we expect in the next few months ? Lets sumise a 2% cut in rates leading up to election month 2009 , credit act stability and increased compection in home loans , perhaps some higher risk lenders entering the fray, lead up to world cup 2010, demand increase in the middle to upper income groups driven by increasing wage demands on higher inflation projections. Assuming some easing of inflationary pressures caused by high essential commodities , fuel , food , etc. It is likely a good time to consider buying that property you may need as a family home , investment , holiday home or office.
Historically countries that host a world cup soccer event always reflect a boom in property of 15-30% in the lead up year , and a few years post world cup.
Sectors that will benefit may be all property linked to tourism , commercial property , prime residential , and even retail developments , knock ons in all property sectors are likely.
Time it right and you can make a good investment in the next 3-6 months , but delay too long and the boat may leave the harbour. Choose well , get a good guide and bear in mind that buying right is only 1 small factor in real estate investment , long term returns go way beyond just buying right , property investment will always be a long term investment , short term speculators beware. Of greater importance would be , potential for further development of the property , sub division? , rezoning,suburb developments , income potential , flexibility , legal restrictions , build quality , structure , roof , all which should dicate offer prices.
We have seen an 8-10 month slowdown , on average only 10% of the time that any property should be held to obtain a good return. 8-10 years is the average home ownership time line don't think short term.