Home sales are down. Retail sales are down. Factory orders in May suffered their biggest tumble since March 2009. Roughly a million Americans have dropped out of the jobs market altogether over the past two months.
These grim stats from the biggest economy in the world are concerning as the old saying that if America sneezes; the rest of the world catches a cold, still rings true.
In South Africa there has been an annual decrease of 627 000 of jobs on offer according to Stats SA while the official unemployment rate is 25, 3 %. No wonder our crime rate is so high when at least one out of every four persons doesn’t have a job with scarce prospects of gaining employment.
The latest FNB Estate Agent Survey reveals a residential property market that is weakening, after a mild recovery that lasted from early 2009 to early 2010.
Johan Loos from FNB says that we are probably at the start of a weakening trend in the residential property market, with signs of a slowing economy, as well as a lack of further interest rate cuts following the 5 percentage points’ cut that took place from December 2008 to August 2009.
On a positive note, with many people downscaling there has been growth in the lower end of the property market and this trend has also been noticed in Jeffreys Bay.
According to Nicholas Melck, a local estate agent and property developer, interest is being shown in the houses below R 1 million in the town. “We have buyers who are looking at the more expensive stock as well as in this kind of market there are good deals to be found across the board”, said Melck.
For more on the Jeffreys Bay property market visit our property page