Over the past couple of months, we’ve talked about how the residential property market is booming and about how the factors driving this trend will most likely be sustained throughout 2021.
Probably the biggest driver of residential sales is the low interest rate, and there’s talk of the Reserve Bank knocking off another percentage point in the coming months. Recent stats also show that banks are taking a more optimistic view on lending as more households move towards pre-lockdown stability. Understandably, banks were very risk averse last year, but in the first quarter of 2021 they’ve approved around 40% of new bonds with below-prime interest rates.
Obviously, this brings the cost of financing a home within reach for an entire demographic that previously couldn’t afford homes of their own, while another significant sector is taking advantage of the low cost of borrowing to buy second properties, either as holiday homes or as buy-to-let investments.
The low-down is that more people are in the market to buy, and properties that are priced correctly are selling fast. For serious sellers, this is great news!
We recently spoke to Daily Maverick about the upswing in the residential market. You can read the article here. We believe that, interest rate aside, buying activity is being fueled by more realistic pricing of properties by sellers.
Determining the real market value of a property can often result in a tough conversation between an agent and a seller, and this is where our data-driven valuation tool adds real benefit. 93% of our agents’ signed-and-sealed transactions fall within 10% of our valuations; 85% of properties on our books sell at the listing price; and because there’s less back-and-forth before offers are accepted, our properties sell 33% faster on average.
This speed, combined with our low, fixed-fee commission model ensures that sellers who list with Leadhome agents also get more out of a deal. Our value proposition is clear, competitive and, on average, 45% cheaper. Our sellers really are smiling all the way to the bank.
If you’re thinking of putting your home on the market, there’s no better time than right now. The property market is seasonal and the expected drop in buyer interest over Easter and the April school holidays is tailing off. Historically, we know that buyers focus again in June and July, which makes May a good month to list.
For sellers, our commitment to growing our presence in key areas will be another advantage as we continue to expand in 2021. We currently have nearly 80 qualified agents, with literally thousands of years of experience between them, and our aim is to grow this to 200 agents across the country by the end of the year.