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There are indications that banks' lending appetite has increased, according to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
He was commenting on Deeds Office data by Lightstone Property for the period from January to March 2019.
According to Goslett, this apparent increase in lending appetite by banks is positive for buyers.
Buyer's to seller's market
Goslett believes there are early signs of the long-term price curve in the real estate market preparing to shift from a buyer's market to a seller's market after the elections. "Bar ongoing concerns around our national power utility, there have been several positive outcomes for the SA property market during the first quarter," he adds.
"Our interest rates and credit rating have remained stable, which encourages investor confidence in the market."
Growth in bonds registered
Goslett says data shows the first quarter of 2019 experienced a 25% growth in the number of bonds registered compared to the first quarter of 2018.
The number of freehold properties and sectional titles sold in the first quarter increased by 27% and by 45% respectively compared to the first quarter of 2018.
"House prices have also reflected some sturdy growth in the first quarter," says Goslett.
According to the data, the current national median price of a freehold home has grown by 8.5% to R1 122 349 on the median asking price for the first quarter of 2018. Likewise, the national median price of a sectional title grew by 5.2% to R1 049 810.
The average active RE/MAX listing price for this period increased by 9% to R2 598 255.74 compared to the first quarter of 2018.
The average bond amount granted during the first quarter saw an increase of 4.4% to R1 102 000.
According to Goslett, this too reflects an increased lending appetite by financial institutions.
