The surge in first-time buyers entering Cape Town’s property market – a notable 3.3 times more than this time last year – augurs well for a gradual house price recovery in the next few months, says Dr Andrew Golding, chief executive of the Pam Golding Property group.

Growth in the value of outstanding credit balances in the South African household sector (R1 669,6 billion) was only slightly higher at 6,1% year-on-year (y/y) at the end of May 2019 from 6% y/y at end-April when outstanding balances came to R1 660,9 billion.

Growth in the value of outstanding credit balances in the South African household sector (R1 660,9 billion) remained relatively stable in the first four months of 2019, recorded at 6% year-on-year (y/y) at the end of April this year.

Buying a new home continues to become more affordable as weakening housing demand results in ongoing negative real price growth (after inflation) in the residential property market.

With inflation currently below the mid-point of the Reserve Bank’s inflation target and economic growth remaining sluggish, the Monetary Policy Committee kept the repo rate steady at 6.75%, as expected.

Residential property market sentiment in South Africa increased over a wide front in the final quarter of 2018 on the back of an improved economic performance.

The value of outstanding credit balances in the South African household sector increased by 5,7% to R1 630,2 billion in 2018 after rising by 3,8% in 2017.

2018 was a challenging year for the South African property market, with negative real price growth in the residential property market and slowing market activity.

After an unexpectedly tough 2018, but with the welcome announcement that the repo rate remains unchanged following this first MPC meeting of the year, the outlook for 2019 is somewhat brighter.

Third quarter (Q3 18) statistics released by ooba, South Africa’s leading home loan originator, show that year-on-year from Q3 17 to Q3 18, the growth in the Average Purchase Price effectively remained static with a 0.1% increase. This continues the trend of negative real price growth (growth less inflation) in the residential property market.

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