January 2021
FROM MY DESK..
We have arrived at 2021 and wish only the best to you and your families. May you be safe and healthy and prosperous in this year.
Despite the pandemic, incredibly, the housing market has surpassed all expectations in 2020. Applications to purchase a home hit a low point in autumn due to a nationwide hard lockdown, but have rebounded swiftly.
As of the week ending December 4, homeloan applications have exceeded year-ago levels for 29-straight weeks, and cumulative offer to purchase applications have surpassed 2019 levels. While the speed and magnitude of the housing recovery was surprising, the strong underlying fundamentals serving as tailwinds for the housing market's recovery were not, and these tailwinds are expected to remain strong in 2021.
The unfortunate news however is that we are still in the grips of this pandemic which influences the economy, job security and ultimately affects house price growth.
A struggling economy results in lower house price growth. According to the latest FNB House Price index reports, there were an annual house price growth of just 2.6% year on year in October 2020. Until our economy recovers from the pandemic, the prediction is that house price growth appreciation will remain low for 2021.
The positive is the low interest rates which will likely remain low for 2021 with a possibility of a slight increase around 0.5% for 2021. This has created a surge of first time home buyers who can now afford their own home instead of renting. This in turn created a huge demand for property in the entry level price ranges and the Nelspruit market is noticing a serious shortage of properties in the lower price bracket.
Finally, the introduction of a third national lockdown and new Covid-19 safety measures have been introduced by the Government, following a rapid spread of the virus. While beaches, the liquor trade and a curfew is in place, estate agency may continue to operate, following the latest Government Protocols. Please rest assured that our agents comply with the COVID-19 rules and regulations and we appreciate that you will understand and agree with the conditions set by an agent when it comes to viewing a property.
FOURZ LOWVELD PROPERTIES TEAM GIVES BACK
The past year has been particularly hard for so many. So, we decided to help support some of our favourite charities. We hope that you'll join us in supporting your local organizations and will let you know on a regular basis which organisation we are collecting for at a particular stage.
"Life's most persistent and urgent question is, What are you doing for others?"
- Martin Luther King, Jr.