In the property sales market, the market is either a sellers' market or a buyers' market depending on the market trends that are prevailing at that particular time. The definition of these two markets and what determines their existence is as outlined below:
Buyer's market: Supply is greater than demand thereby giving buyers the advantage to negotiate prices favourably for themselves.
Seller's market: In a sellers' market demand is greater than supply meaning that there are more buyers than properties available on the market, and they sell quickly as buyers are more likely to make reasonable offers.
Due to the current uncertainty within our economy the property market is hanging in limbo as today it may stand to be the buyers' market and vice versa. Many policies have changed and therefore there is a higher demand for property as compared to the properties availability on the market. Buyers are trying to offload their funds held by investing in immovable property.
This high demand and shortage of reasonable priced properties has seen different agents partnering to achieve sales which was not a common thing in the past. Because of this Real Estate governing body continues to urge registered agencies to partner with other registered players to avoid promoting the infamous bogus agents as this shortage also creates room for them to flourish and take advantage of the situation. The number of buyers being greater than the stock available means people have funds available in banks and mortgage offers which then forces them to settle for what is available or nothing at all.
As a nation we remain optimistic as these current difficulties may very well be the birthing pains of excellent economic reforms that will see all sectors of the market eventually prosper as nothing comes easy in terms of development. The three tier pricing system being fuelled by the illegal black market trading of money, inter alia, leaves sellers and buyers in a dilemma in terms of property pricing for sellers and the non-acceptance of mortgage bonds by most sellers for buyers. The daily changes in the rates make the situation untenable and therefore leaves buyers stranded with the majority of sellers pulling their properties off the market awaiting certainty and sanity to the situation.
We find therefore that our current economy is not in line with our ordinary text book economics therefore as we go we, as agents, are learning new things daily and we also strive to conduct our business lawfully and with integrity ensuring we keep our doors open to our clients for further business.