The average number of interested buyers attending show houses in the Western Cape has plummeted by 50 percent while show house property stock has increased by 25 percent compared to last year.

According to statistics derived from House Finders’ data tracking 13 Western Cape real-estate companies’ show house exhibitions, there has been a 22 percent year-on-year increase when comparing the first quarter of 2007 with the first quarter of 2008. However, more stock means more options for buyers and the spill-over now is a decrease in buyers visiting show houses.

Commenting on this development by analyzing show house trends in Cape Town’s southern suburbs, Jeanne van Jaarsveldt, RE/MAX of SA finance and marketing director, said there was a 50 per cent drop in buyers visiting show houses over the last few months. “A year ago the average number of buyers visiting a show house was around 15 to 30 with homes in middle price brackets being the most active. We are now seeing between four and 12 visitors coming to show houses over weekends,” he said.

“The most active price brackets are in the Plumstead area where buyers have an interest in properties between R900 000 and R 1.3-million,” says RE/MAX Elite broker and owner Alan Burgoyne. “In the South Peninsula the average price is R750 000 to R1-million while in the South East Peninsula the majority of buyers are looking for properties under R750 000.

“Bergvliet and lower Constantia have most active show houses, which are in the vicinity of R2-million plus.”

Negative reports about increased crime at show houses which circulated in the media last week can further impact negatively on attendance figures.

Last week, Western Cape media reported on the increase in crime targeting estate agents, specifically during weekends at show houses in the southern suburbs.

A well-known real-estate agency has also called for a complete ban of show houses here to safeguard interests of homeowners and estate agents.

“With the number of houses for sale having increased dramatically over the recent months, the majority of serious sellers recognize the important role show houses play in ensuring that their homes are viewed by the maximum number of serious buyers,” says Van Jaarsveldt.

“We therefore condemn any show house bans. It is also our view that all industry role-players including all real-estate agencies, industry bodies, and security firms, should work closely together to equip agents with the necessary safety and security insights and infrastructure to circumvent and decrease criminal occurrences during show houses if the frequency of incidents further increases.

“Show houses and residential exhibitions will always remain a key component in an agent’s pool of marketing activities. We condemn any criminal activity interfering with this, and we will utilize our infrastructure and influence to assist all South African agents and real-estate agencies to address this issue.”

RE/MAX of SA has now devised a show house protection agreement plan with security firms in the southern suburbs.