"History shows that these major announcements tend to spark a period of adjustment, and with house prices already dipping, we’re likely to see that continue through the end of the year"
- Shepherd Ncube - Springbok Properties
The latest analysis from Springbok Properties suggests that homeowners planning to sell may face further price declines in the coming months, as past trends indicate that major fiscal announcements such as the Autumn Budget often coincide with short-term softening in the housing market.
Springbok Properties reviewed the last seven significant economic statements, including Spring and Autumn Budgets and Government growth plans. The company compared the pace of monthly house price growth immediately after each announcement, as well as changes three months later and a year on. This comparison provides a view of how short- and longer-term reactions have unfolded during previous periods of economic uncertainty.
The findings show that average house prices dropped by -0.10% in the month following these seven statements. Prices also fell by -0.40% across the first three months after each announcement, indicating a pattern of early hesitation among buyers and sellers.
However, the longer-term picture appears more stable. Once the market has had time to adjust, house prices rose by an average of 2.65% over the year following these announcements. This trend suggests that although immediate reactions can apply downward pressure, the market often regains momentum once confidence improves.
Several factors could weigh on prices in the short term. Higher borrowing costs are still affecting affordability, while potential tax adjustments and a weaker economic outlook may dampen demand. In addition, some areas are already carrying excess stock, leading to slower transactions and a growing number of price reductions. These combined influences could add further pressure as the year progresses."
“The upcoming Autumn Statement comes at a critical time for the property market,” said Shepherd Ncube, CEO. “With interest rates still elevated and confidence fragile, even the hint of new fiscal changes can cause both buyers and sellers to hesitate. History shows that these major announcements tend to spark a period of adjustment, and with house prices already dipping, we’re likely to see that continue through the end of the year."
"For those who need to sell, the challenge is that waiting for certainty could mean selling for less. Quick sale routes allow homeowners to act decisively before further market softening, providing the speed and certainty they need in uncertain times."
"For those who can afford to wait, history suggests the market does recover once the dust settles, but not everyone has that luxury. In many cases, sellers are caught between a rock and a hard place, and that’s exactly where alternative selling solutions can make all the difference.”
