As 2023 hurtles to a close, all eyes are turning to what’s in store for 2024. The Rawson Property Group’s sales, rentals, commercial and finance specialists share their analyses of this year’s key trends and events and explore the most likely shifts to occur in 2024.
Residential Property Sales
“Residential sales have been under a bit of pressure for some time now, largely due to the rapid interest rate rise and increasing cost of living,” says David Jacobs, Gauteng Regional Sales Manager for the Rawson Property Group. The effects of this pressure started becoming more noticeable from around March/April 2023. “We started seeing a noticeable drop in buyer demand, an increase in the average time a property stays on the market, and an uptick in distressed property sales,” Jacobs says. “It was very clear that a lot of buyers who had bought at their full domestic purse capacity – when interest rates were lower – were finding their financial obligations unsustainable in current conditions.” Trends amongst those buyers still active on the market also shifted from upscaling to downscaling, as lifestyle affordability took centre stage.
Jacobs says that this cost-consciousness is unlikely to change dramatically in 2024, and buyers will remain extremely price sensitive. However, stabilising interest rates and inflation could unlock a pent-up wave of buyer activity with positive results for property price growth in the mid- to long-term. And, as is the case currently, sellers with properties priced correctly in the relevant market conditions will continue to conclude successful transactions in completely reasonable timeframes.
“I think there are a lot of buyers who have put off their property purchases while they wait to see what direction the market and economy is headed in,” says Tony Clarke, Managing Director of the Rawson Property Group. “If the interest rates