The costs of running a home are making smaller properties far more attractive to South Africans.
More and more old people are downscaling while fewer people are moving into larger houses.
This is according to John Loos, a Property Economist at FNB.
A mere 13% of sellers during the second quarter of 2015 did so in order to buy a larger home. This is down from 17% in the first quarter and the high of 20% reached at the end of 2013.
About 30% of all sales in Q2/2015 was in order to downscale.
Scroll down to listen to The Money Show presenter Bruce Whitfield’s interview of Loos.
South Africans are becoming more conservative when it comes to property.— John Loos, a Property Economist at FNB
We expect interest rates to rise. But this is more about general running costs.— John Loos, a Property Economist at FNB
This article first appeared on 702 : South Africans are selling to buy smaller homes as costs increase