It’s evident, according to Dr Andrew Golding of Pam Golding Property, that the housing market is currently tougher and more competitive than before.

"Amid the prevailing trading conditions it's true to say that it's shifted more towards a buyers' market and that purchasers are more conservative in what they are prepared to offer. This is further tempered by the fact that financial institutions adjust the amount they are prepared to lend as mortgages and take into account the increased monthly repayments as a result of higher interest rates and, of course, the National Credit Act, which has tightened up the criteria for lending," he says.

Adjust expectations

"In this scenario sellers need to adjust their expectations to realistic, market-related prices in order to attract buyers who are now presented with considerably more choice of properties than previously. The last thing a seller should do is resolutely remain fixed on a specific price if this is way out of line with what the market is prepared to pay. If the property remains on the market for a long period of time the pool of buyers interested in it will have seen it and walked away due to it not being correctly priced. They will also be fully aware that it has remained on the market for an extended period of time and it will be very difficult to get them back — even at a reduced price. Bear in mind that buyers do their homework and look at prices achieved for other properties in the area," says Dr Golding.

Ronald Ennik, a director of Pam Golding Properties and MD for the Gauteng region, concurs. "The gap between asking and selling prices is widening. Sellers — and estate agents too for that matter — need to be more realistic about price as inflated prices which are not market related are met with a lack of interest. Agents who hold sole mandates should look at negotiating with clients to adjust the mandate prices downwards, in some instances by as much as 20 percent, to be in line with current market conditions.

The current adjustment is not untoward

"The market has enjoyed a 10-year up-cycle — the longest in history, so the current adjustment to suit today's market conditions is not untoward. It is important to note that, while lower, the current market is nowhere near the level of 1997 when show days saw an extremely low attendance. In fact, in spite of the market downturn PGP Gauteng is still experiencing busy show days and doing five times more valuations this year to date compared with last year. This probably reflects the fact that, after achieving strong growth in the value of their homes over the past decade, some are seeking to capitalise on that growth.

Given the fact that the market does tend to operate in cycles there's no doubt that property has a sound and solid future and will continue to enjoy high appeal in terms of investment. Also, there is a growing desire among consumers, especially the ever increasing middle class market, to acquire their own property," he adds.