As anticipated, the MPC kept the repo rate steady, taking a conservative approach against the backdrop of rising fuel prices, and with a wary eye on CPI inflation, says Dr Andrew Golding, chief executive of the Pam Golding Property group.

The Firstrand economic team expects a 25 basis point interest rate hike this week when the SARB (South African Reserve Bank) MPC (Monetary Policy Committee) meets to deliberate on interest rates.

Getting your foot on the property ladder isn’t easy for first-time buyers.

Uptick in household credit and mortgage balances growth in the first half of 2018, while home loan repayment patterns were divergent across income categories in the twelve months up to mid-2018

With inflation still within the target range, but with concerns following a round of fuel price increases and other potential inflationary impacts, as was anticipated, the Monetary Policy Committee kept the repo rate unchanged following this week’s meeting, says Dr Andrew Golding, chief executive of the Pam Golding Property group.

Property statistics for the second quarter (Q2 2018) released by ooba, South Africa’s leading home loan originator, indicate that banks remain positive about the home loan lending environment despite continuing negative real growth in average property prices nationally.

The FNB Holiday Towns House Price Index, comprising towns (both coastal and inland) whose housing markets are deemed to be strongly driven by holiday home demand, continue to show a mild “outperformance” in terms of house price growth, relative to the overall national market.

After a four year high of unprecedented double-digit growth, South Africa’s strongest market took a knock in 2017 with a significant drop in sales volumes and price growth, but the new year has got off to a promising start with a record apartment sale price and three sales within 24 hours of listing.

By historical standards, housing in South Africa remains affordable and also compares favourably to affordability in other global housing markets. However, slower growth in local household income has seen a gradual deterioration in affordability since late-2013, says Dr Andrew Golding, chief executive of the Pam Golding Property group.

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