Signals ‘all green’ for further market improvement

Almost halfway into 2010, the national RealNet estate agency group is satisfied that the property market recovery has now taken root.
“The value of sales in our network over the first four months of 2010 was 80% higher than during the same period of 2009,” says group CEO Tjaart van der Walt, “and there are many other positive indications of further market improvement as the year progresses.

”These include lower household debt levels, lower inflation and the lowest interest rates in many years, all of which are making home ownership more affordable for more people.
“In addition, the government’s recent announcement of a R1bn mortgage guarantee might break a longstanding logjam that has prevented much of the huge housing demand at the lower end of the market from being translated into sales.
“The fund should mean that many thousands of people earning between R3500 and R9000 a month can now obtain home loans to buy their own homes, and the entry of so many new buyers will no doubt give the overall market a further boost.”
On the subject of home loans, Van der Walt says his group and its mortgage origination partner BondChoice are now achieving a 68% approval rate on loan applications – mostly as a result of giving buyers good advice upfront about what type of property they can afford.
“As we said at the start of the year, now is a good time to buy a home in terms of price and affordability, but we also always advise buyers to budget conservatively and perhaps set their sights on less expensive properties to ensure that they will still be able to afford their bond repayments even if interest rates start rising again.”
Meanwhile, he says, RealNet is not expecting any rapid rise in home sale prices this year – more a gradual lifting. that will hope “And we don’t anticipate that the pattern will be altered in any significant way by the Soccer World Cup. Although this is no doubt a wonderful opportunity and showcase for SA, it can really only be expected to bear fruit for the property market in years to come.”
Issued by RealNet

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 23 Feb 2018
      RE/MAX Property Associates’ Table View Office, which services property buyers and sellers along the Table Bay coastline and surrounds, has recently sold a home in Woodbridge Island for R11 million – the highest price paid for any home in the sought-after security complex.
    • 23 Feb 2018
      Choosing to invest in an overseas property can be daunting. But as more and more investors recognise the value of a diversified portfolio that includes property outside of their own country of residence, international property investment is growing in popularity.
    • 23 Feb 2018
      The positive change in South Africa’s political landscape is paving the way for an upswing in the local property market.
    • 22 Feb 2018
      An excellent credit score is one of the most priceless assets a potential home buyer can have. This tool has the power to secure favorable mortgage and refinancing rate, influencing everything from the size of the loan repayment to the interest rate on the home loan.
    • 22 Feb 2018
      What do you do if you love your home’s location and the area, but the home no longer fits your growing family’s needs? Do you stay and renovate your existing home or find a home that meets your developing criteria?
    • 22 Feb 2018
      While every owner wants to sell their property at the best possible price, overpricing a home can be the kiss of death for a sale.
    • 21 Feb 2018
      Given the hand they were dealt, government has performed a delicate balancing act which it is hoped will serve to reignite confidence in investment in South Africa, regain our global credibility and satisfy the credit ratings agencies, says Dr Andrew Golding, chief executive of the Pam Golding Property group.
    • 21 Feb 2018
      The real estate mantra, ‘location, location, location’ remains a strong market influence regardless of the prevailing economy, with suburbs like Rondebosch enjoying the buffering benefit of being ideally situated.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us