TRENDING FINANCING
The twists of real estate markets
Why 2020 does not compare to the 2008 housing market crash
When the national lockdown was first announced at the end of March , the real estate industry braced themselves for another housing market crisis similar to that of the 2008 crash . Unexpectedly , the market has bounced back and has shown very few similarities to that of the crash twelve years ago .
According to the Regional Director and CEO of RE /
MAX of Southern Africa Adrian Goslett , nobody could have predicted that the property market would bounce back as quickly as it has .
The RE / MAX National Housing Report for Q3 2020 revealed that the number of freehold properties registered decreased by 31 % Year-on-Year , but increased massively from the mere 3,869 that were registered last quarter . Similarly , sectional titles saw a 28 % decrease Year-on-Year , but also reflected a good recovery from the mere 1,105 registered the previous quarter .
“ It can be expected that the number of registrations during the third quarter will be lower year-on-year based on the fact that the deeds office was closed for long periods and therefore needs to process a backlog of deals . As such , reported sales are a better indicator of market performance than registered sales at this point in time ,” Goslett explains .
Reflecting on how his brand had managed to recover from the inconveniences of the lockdown that has been propelled by the pandemic , Goslett says they anticipate continuous rises in the market , if there would not be any other major crisis .
24 NOVEMBER / DECEMBER 2020 SA Real Estate Investor Magazine