Fewer SA homeowners are selling to emigrate - but many more are selling due to financial strain

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The percentage of people selling their property to emigrate is now half of what it was four years ago, data from the latest FNB Residential Property Barometer has shown.

The index shows that emigration-related sales were steady at 9% in the second quarter of this year, compared to a peak of 18% in 2019.

Most sellers planning to emigrate (67%) are between 35 and 44 years old and homes sold for this reason are mostly in the R2.6 million to R3 million price range.

About 12% of sales in the second quarter were because of so-called semigration within South Africa.

Almost one in four (24%) of homes sold in the second quarter were due to financial pressure - up from 17% in the first quarter. In the lower price brackets below R500 000, about one in three houses are sold for financial reasons.

According to FNB economist Siphamandla Mkhwanazi, this reflects the impact of the sharp increase in interest rates, which usually has a bigger impact on lower-income households.

The latest FNB House Price Index shows house price growth decreased in May, averaging 1.9% year-on-year, and down from 2.1% in April.

"Elevated living costs as well as higher borrowing and debt-servicing costs continue to erode affordability, particularly among lower-income groups," says Mkhwanazi.

The average time a property stays on the market before being sold is about 2.8 months. This is the longest time on the market since the second quarter of 2020. Estate agents surveyed said it is mainly due to the market slowing down.

The Western Cape had the most market activity. Gauteng saw the biggest decline in market activity.