Estate agents in Port Elizabeth in the Eastern Cape have been dealt severe body blows by recent interest rate hikes and the effects of the new National Credit Act.
The knockout punch could be just around the corner for some, says Jaco Rademeyer, principal of Jaco Rademeyer Estates in PE.
Estate agents in Port Elizabeth in the Eastern Cape have been dealt severe body blows by recent interest rate hikes and the effects of the new National Credit Act.
“It is a challenging time for estate agents and some might not survive, and worst times may still lie ahead. I expect interest rates to climb again in October and that the effects of the National Credit Act will become even more visible in the coming months.”
Rademeyer says the hike in interest rates, up from 10,5 per cent to 13 per cent over the past year, has placed buyers, and therefore estate agents, under tremendous strain.
The traditionally quieter winter months have placed additional pressure on many agents, according to him. “The winter period usually rings in a quieter period in the property market before it increases again towards the latter part of the year.”
Despite the downward spiral, Rademeyer has been able to consolidate and even improve on his successes of previous years.
He has trebled his sales in June, July and August compared to the same period the previous two years. In May, he achieved sales of R23 million in one week.
His listings in June, July and August also quadrupled compared to the same three-month period the previous two years.
However, success has come at a price. According to Rademeyer, agents have to be willing to go the extra mile to conclude sales.
“Before the slow-down in the market, I showed prospective buyers an average of five properties before a sale was made. Now I have to show at least ten.” He says properties also remain on the market for much longer.
Although he offers stock in all segments of the market, Rademeyer finds the segment between R1,5 million and R2 million to be the most active at the moment.
Rademeyer was recently honoured as one of the top 16 estate agents in the country at the prestigious Nedbank Property Professional Awards in Cape Town. Last year the Institute of Estate Agents named him Agent of the Year in the South Eastern Cape region for units sold and commission earned.
He attributes his success to being able to understand the needs of his clients, outstanding service and superb marketing. “I work hard to ensure that I am visible and that prospective clients are aware of my commitment to excellent service.”