Dear Fisherhaven property owner
Page 2: Many properties are overpriced
Greetings from a cold and wet Fisherhaven. The dreaded Cape winter has taken a firm grip on us and some gardens here are getting a good drenching. The Bot vlei is rising slowly; maybe it will reach the high levels we saw last year?
You will probably know that the property market has taken a dip and house prices are taking strain. The latest ABSA property report shows that the annual growth in the price of an average medium-sized South African house is at its lowest point since October 1999. In nominal terms (that is, before the effect of inflation is removed), house prices have fallen by 4,3% in the last 12 months and now stands at R960,000. In real terms (after the effect of inflation is removed), the growth in house prices is actually negative at -5%. The prime mortgage rate at 15% and the stiff requirements of the new National Credit Act (NCA) is not helping things at all.
The property market in Fisherhaven follows the national trend; our prices are dragged upwards or downwards by what happens elsewhere on a national and international scale. I do believe that we live in a very special place, but unfortunately we are not isolated from the rest of the world! On a local level, the market is fairly quiet and some estate agents have closed shop. Local attorneys also tell me that there has been a marked drop in the number of property transfers. In my long association with the Fisherhaven property market, I have seen several downturns. The good news is that the property market will always recover from slumps, sometimes with much more vigour than before.
