How long does it take to sell a property
Category Advice
The process of selling a house is more complex than many potential property sellers anticipate. It is a very time-consuming process which includes many components such as: marketing the property to the general public; showing the property to potential clients; and negotiating a sale. On average, the process of selling a property in South Africa takes (roughly) between three and nine months. Time-on-market shares a commonality with most key indicators of the property market (such as house price inflation, total transactions, and new property stock built) since it too is dependent on economic growth and interest rates.
As seen in the figure below, the average time on market for the three most prominent value bands was a bit higher in those quarters where house price inflation was lower.
There is also a significant difference between the average time on market of mid value properties and high value properties. On average, mid value properties take roughly 5.5 months to 6.5 months before they sell, while high value properties take between 5 and 6 months to sell. This difference is probably due to the fact that the majority of high value properties are located in metros where there are larger pools of potential buyers, and more competitive property markets.
While it might seem typical that suburbs that are in high demand would transact much sooner after being listed, there are also other dynamics at work that could determine how long a property stays on the market before it transacts. In the upper end of the luxury value segment properties might stay on the market for longer because there are less potential buyers. If a seller isn’t pressed to sell the property at a particular time we could also expect the time the property spends on market to be longer.
Even though there is a small difference in the average time on market for lower value properties, the major determinant of time on market is still located inside each suburb. As long as sellers are willing to adjust their selling price and bring it in line with market value, there is no reason to expect any significant changes in the average time a property sells after being listed.
Author: Lightstone
