Who’s up for a little good news?
South African property owners could probably use some, given that news on that front has been pretty terrible for a while now, so we thought we’d share some of the results from FNB’s latest analysis of the residential property market.
In short, there are signs that prices might be stabilising, with a number of factors contributing on that front.
This below comes via Fin24:
Improvements in demand can be attributed to some easing in buyer despondency following the elections, the increased bargain hunting given the attractive pricing, more competition between lenders as well as lower interest rates, says FNB.
This is reflected in the steady growth in mortgage extension, which has averaged 4.3% in the year to date, compared to 3.4% in the same period last year.
In fact, for the first time since June 2011, mortgage advances have been growing faster than the average house price growth in South Africa since the beginning of the year.
“Except for the brief period in the beginning of 2018 (‘Ramaphoria’), we have not seen mortgage lending outpacing house prices since June 2011,” FNB said in a release.
This has contributed to a 0.9% increase in transaction volumes this year, compared to 2018.
Ramaphoria, hey – those were the days.
The analysis also lists the slowing of supply and interest rates as contributing factors, offering this outlook going forward:
FNB expects that house prices will increase by 3.5% this year, and by 4% next year.
The eThekwini metro continues to overperform, supported by new developments in the North Coast regions, as well as renewed interest in the city centre, says FNB. In the inland regions, Ekurhuleni appears to have bucked the generally slowing price trend at a national level, while Johannesburg and Tshwane remain in the low single-digit territory.
However, Tshwane properties remain in the market for the shortest periods before they are sold:
Still not a great look for Cape Town’s property market, but perhaps there are signs of life.
At least for us renters out there, there has been some respite of late price-wise. I wonder how long it will last.
[imagesource: Google Maps] The controversial Grocer’s Licence that is being awarded t...
Is Binance coin a true contender to overall market dominance? Binance coin is not only a u...
[imagesource: Facebook / Latest Sightings] That wildebeest has one crocodile gripping i...
[imagesource: 24sata] On September 12, people fishing on the northern Adriatic island o...
[imagesource: Ahvenas / Atlas Obscura] Stop that, it's silly! A famous line from Mon...