Rate increases fail to dent housing demand

2016-03-24 06:00

In the financial year to the end of February, the average price of homes on which new bonds were approved rose by 6,3% to just over R1m, according to the latest statistics from BetterLife Home Loans.

These figures also show that over the same period, the average approved bond size was R811 000, and that 52% of borrowers in the past 12 months were able to pay a deposit of one-fifth of the purchase price.

“This is a far cry from the days when 100% or no-deposit loans were the norm,” says BetterLife Home Loans CEO Shaun Rade-meyer.

“It is very much in line with our on-the-ground experience, which is that SA consumers have become much more informed about their finances in general.”

As it is, he says, the monthly household income required to qualify for the average loan has risen less than 1% in the past 12 months, despite the 6,3% in house prices, largely because so many prospective borrowers have been able to put down bigger deposits.

“Discipline as regards personal debt management and savings has facilitated sustained demand in the residential property sector, even though there have been three interest rate increases in that time.

“Consumers who have planned well ahead for their home purchases won’t delay in the hope of the tide turning on interest rates or home prices.”

Rademeyer says, first-time buyers who have usually been the first to exit the market when the financial going gets tough have been assisted to go ahead with their home purchasing plans over the past year by the fact that home prices in this sector grew by an average of just 2,3%.

(Issued: BetterLife Home Loans)

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

Inside News24

 
PARTNER CONTENT
INFOGRAPHIC: New thinking required for retirement

Everything we believe about retirement is fast becoming outdated.

PARTNER CONTENT
WATCH: How education can change a life

A university education gives students the chance to create a better future for themselves, their families and to opportunity achieve their dreams.

/News

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.