Home Loan Data Shows Resurgence in First-Time Homebuyers
Caxton:
South Africa’s Q3 2024 property market shows signs of recovery, led by first-time homebuyers and supported by easing interest rates, lower deposit requirements, and competitive bank lending. First-time buyers, particularly younger ones, account for 51% of applications, while the Western Cape leads in buy-to-let investments. Consumer confidence is gradually improving.
Struggling with your home loan? Here’s how banks can help
IOL:
South African homeowners face severe financial pressure due to rising costs and a 67% increase in interest rates since 2021. About 7.2% of mortgage holders are three or more months in arrears, up 20% year on year. Financial experts urge homeowners to engage with banks for potential solutions to avoid repossession.
First-time homebuyers flocking to Gauteng
Daily Investor:
Gauteng leads South Africa in first-time homebuyer activity, accounting for 51% of BetterBond’s loans to this market segment, with Johannesburg’s affordable South-Eastern suburbs attracting buyers. The Western Cape ranks second despite high prices, driven by high demand and options in smaller towns and Cape Town’s northern suburbs. Falling interest rates boost market optimism.
Gauteng and Western Cape: Hotspots for first-time homebuyers in 2024
Property Review:
Gauteng leads first-time homebuyer activity in South Africa, capturing 51% of BetterBond’s loans, with demand high in affordable areas like Johannesburg’s South-Eastern suburbs. The Western Cape follows despite its high prices, spurred by young professionals. Expected interest rate cuts could further boost property market activity among new buyers.
South Africans between the age of 36 to 49 years dominate the residential market
IOL:
Buyers aged 36-49 now lead South Africa’s property market, making up 40% of purchases, up from 37% in 2018. First-time buyer demand has also risen to 51%, bolstered by an improved inflation outlook. Older buyers face shorter loan terms but may secure loans with higher deposits or tailored terms.
Goodbye Cape Town – ‘reverse semigration’ wave hits South Africa
BusinessTech:
Balwin Properties’ financial results highlight a reverse semigration trend, with Gauteng reclaiming its top revenue position at 49%, compared to the Western Cape’s 46%. Despite economic pressures, Gauteng’s affordability draws both local and international buyers, while demand in the Western Cape remains strong, especially in scenic, high-demand areas.
Big changes to interest rates coming soon in SA
BusinessTech:
South Africa’s transition from JIBAR to the data-driven ZARONIA by 2026 aims to improve transparency in financial markets. This shift requires adjustments across loans and derivatives, while a potential interest rate cut by the SARB in November may offer short-term relief, despite external inflationary risks from rising oil prices.
Q3 ’23: Muted loan volumes; strong approvals – ooba
Bizcommunity:
ooba’s Q3 2023 report shows a cautious homebuying environment due to high interest rates, with muted loan volumes but steady approval rates. First-time buyers’ deposit requirements rose by 25.9% year-on-year, and average purchase prices are up. Demand is shifting to affordable areas, with signs of recovery expected as interest rates ease.
First-time homebuyers to lead the property market’s recovery
Property Wheel:
Q3 2024 data from ooba Home Loans shows first-time homebuyer demand is rising with expected interest rate cuts. First-time buyers, averaging 35 years, now make up 51% of applications with deposit requirements down by 2.9% year-on-year. Western Cape properties remain priciest, while Gauteng South and East offer affordable options.
Alarm bells for middle-class and rich South Africans
BusinessTech:
Middle-class South Africans face severe financial pressure, with nearly half of salary earners left with less than R1,000 or in overdraft by payday. Rising utility, housing, and transportation costs have vastly outpaced inflation, leading to high debt-to-income ratios and challenging the financial resilience of households nationwide.