Revisited... "It was the best of times, it was the worst of times"

Right now, in the face of the CoronaVirus wrecking ball, it is both historic and ironic that, while we have all been burning up time under forced lockdown in our own spaces, change has been happening all around us. Not least in a residential property sector that is now clearly poised for what could well turn out to be its steepest bounce-back in the past 15 years. Admittedly the CoronaVirus needs to be harnessed first. And South Africa's economy recalibrated and stabilized. It could take 18 months. And so my article a month ago, "It was the best of times, it was the worst....." (from Charles Dickens - A Tale of Two Cities) needs revisiting. 

On the side of "The best of times..." opportunity in front of us come the following considerations 

• Interest rates are now at the lowest they've been for over four decades. 
•  House prices expected to drop further from an already low base.
•  'Buy to let' deals become more viable particularly at the lower end of the market. 
•  Pandemic historian has shown that humanity, as social beings, suffer from 'global amnesia' after previous pandemics and a level of 'normality' will return. 
•  A strong rebound in the property market is expected beyond Covid-19.
•  Property market becomes far more attractive than the stock market ... a better safe haven. 

Opportunities abound (even as our priorities are elsewhere) Why? Because the South Africa's homes market currently offers extremely good value, as a result of a CoronaVirus-influenced sub-inflation growth path, as well as a prevailing poor Rand value, and a plentiful stock of 'for sale' homes on offer at attractive prices.  In fact, compared with other residential property markets around the world, our nation's current buy/sell home price structures could well be mistaken for a joke!

Nevertheless, attractive as it may seem right now, home buyers should not be tempted to simply rush headlong and plunge into the market. It will remain favorable to buyers for a while. On the flipside, sellers who can hold out should have the courage to resist coming onto the market for at least a year to 18 months. 

"Worst of times...." scenario

Meanwhile, the closure of the Deeds Office during the lockdown period has caused great delays and prevented people having access to their capital.  Further unpacking of the negative impact of our circumstances is probably not appropriate as it consumes us daily. Except to end with a plea... Estate agents (currently on Level 2) need to be moved to level 3 or 4. The consumer needs us.