The 4th quarter 2015 FNB Estate Agent Survey regarding the “selling side” of the residential market shows a decline in the percentage of sellers selling in order to upgrade homes, with this percentage now well off its late-2013 high.
This suggests that, while financial stress is not meaningfully rising yet, financial “limits” may be being reached for an increasing number of households. This is also apparent amongst a huge percentage of “oldies” continuing to downscale to smaller properties, not necessarily due to financial trouble, but perhaps feeling the cost of running a “large” home.
· Selling in order to upgrade home has tapered from previous highs.
· Selling in order to downscale due to financial pressure slightly up in Q4 2015, but 1 quarter’s rise is not conclusive evidence of the start of an upward trend.
· Emigration-related selling percentage edges up mildly, but remains fairly benign.
· “Semi-gration”-related selling percentage has shown no noticeable decline due to economic slowdown yet.