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Defining the property market in 2021 and beyond

24 February 2021 | Marcel du Toit

Sometimes things change, sometimes they stay the same. Essentially, people like to deal with people. The Leadhome business model revolves around the customer. Through technology we enable buyers, sellers and agents to fulfil critical roles in the process of a home sale. We allow buyers and sellers to control certain steps of the process to ensure the user journey is as smooth as possible. Buyers and sellers manage their time online and agents do the transactions. 

At Leadhome, we have a network of 64 specialist agents across the country. January and February have seen significant growth by welcoming 28 agents to our team. We attribute the keen interest in Leadhome to the fact that agents want to be a part of a company that innovates and builds tech solutions that help the client with easy, stress-free transactions. Not only are we responding to the market picking up, we also want to ensure that sellers and buyers have the best experience. 

And here’s the proof that what we do works: in 2020, despite the challenges, we doubled our market share nationally and had our best December ever. More to the point, our agents are selling houses within 35 days compared to an average of 105 days, for a fee that’s typically 45% less. We believe these are winning statistics that put us at the forefront of the changes and trends emerging in the property market.  

We know that traditionally, in the convoluted process of selling a house, it’s common for transactions to take months, cost a fortune, and leave the sellers suspecting they could have paid lower fees, and gotten a better service. In this article, we spoke about how we’re aiming to tear the existing system apart and reinvent it. 

To start with, artificial intelligence is transforming the way that companies across the spectrum are doing business, and the property sector is no different. We believe we have the edge, as we’ve been tech-driven from the start! Our AI tools predict the likelihood of any property selling at any point in time, by analysing how much interest there is in it, how many website views it has, how long it has been on the market, how the area is doing and how it compares to similar houses. If our AI calculates that the chance of a sale is below 75%, it can even indicate where the problem lies. But, while AI is a brilliant guide, there are so many variables. This is why human skill – the experience that a specialist agent has – is vital. 

So those are the facts; now let’s talk about the trends we’re seeing. 

As a direct result of so many people working from home and needing home offices and bigger living spaces, while fewer people need to factor a daily commute into their schedules, there’s a marked move away from urban metros to outlying areas. Here, we find roomier homes, bigger gardens and better bang for our buck.

Linked to this, the relationship between people and their homes has changed fundamentally. A home is no longer just a place to return to after work or a place to sleep at night; it’s where we spend our time 24/7. And as such, we’re seeing more and more that owners are renovating, adding comfort and value to their properties. For further insights on how to increase the value of your property in a competitive market, please click here

And finally, the low interest rate, coupled with the Reserve Bank’s commitment to keeping it down for as long as possible, will keep the property market in a buoyant and favourable space. Our interactions with banks show that buyers are trying to secure the highest bond amount possible, as opposed to investing lots of cash into a property. And homeowners with existing bonds are taking advantage of the record lows to fix their rates, as opposed to having them float against prime. Smart thinking.

As we continue to navigate the property market in 2021, we thank you for choosing Leadhome and trusting us with your property journey.  We’ll always strive to offer you an outstanding service, underpinned by high efficiency, leading technology and an adaptable and hands-on approach.

Marcel du Toit

Marcél du Toit is CEO of Leadhome. He is interested in the intersection where technology, customer service, and the real world meet, with a specific focus on proptech. Outside of Leadhome he's passionate about his two rescue dogs, sport, and all things South Africa. Marcél holds a masters degree in Management & Finance from the University of Oxford.

M.Sc. Management & Finance (University of Oxford) B.A. PPE & Accounting (University of Stellenbosch) Paul Roos Gymnasium (Stellenbosch)