The FNB Estate Agent Survey report reveals that although homeowners are still maintaining their homes, fewer of them are spending money on home improvements and upgrades.
The report reveals that in conjunction with the weak economy, household owners are increasingly feeling financially constrained in their ability to make significant upgrades to their home. The amount of household owners who are able to make big improvements has declined by 7.35% from the first to the second quarter of 2018, while owners making some upgrades and still maintaining their homes well rose by 4.5% 1st quarter to the second quarter.
Owners who are doing minimal upgrades, but still fully maintaining their homes rose by 1.5% in the second quarter of 2018, while owners who are only attending to basic maintenance issues saw a slight increase of 2% in the second quarter. Finally, owners who are doing little or nothing to maintain their homes declined by 1%.
John Loos, FNB Property Sector Strategist says of the survey results, “This reflects a household sector that is increasingly financially constrained, thus cutting back on luxuries such as home upgrades, but not significantly financially stressed as they were during the 2008/9 recession).
South Africa’s economy looks set continue its stagnant phase into the near future, alongside rises in petrol, and general tax increases. With this in mind, household owners will continue to feel strained financially and home upgrade levels are expected to decrease further. Potential buyers are advised to consider the cost of upgrades before choosing looking at property for sale.
