Today’s announcement by the Monetary Policy Committee (MPC) that the repo rate would remain unchanged at 8.25% - meaning that the prime rate holds steady at 11.75% - was disappointing for consumers with significant borrowings, including those with existing mortgages as well as first-time home buyers, says Dr Andrew Golding, chief executive of the Pam Golding Property group.

Property in the Western Cape is regarded by many as among the most expensive in the country, and for first-home buyers, often completely out of reach. 

In the 2nd Quarter 2018 FNB Estate Agent Survey Buy-to-Let demand is perceived to be slower of late, along with moderating near term expectations amongst agents.

May 2018 saw the FNB House Price Index growing by a faster 4.6%, year-on-year, up from the previous month’s 3.8% in April, and from a February 2018 low of 2.8%.

There was a very slight imprivement in levels of home maintenance and upgrades early in 2018,but this was more on the maintenace side than on the upgrade side.

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.

There have been signs of significantly improved economy-wide sentiment early in 2018, an improvement that many link to the change in the ruling party’s leadership, which translated into a change in the country’s President too.

It has long been a foregone conclusion that towns where markets are driven largely by the demand for holiday homes will always perform below the national average during subdued economic times, but a report released by FNB last month has revealed that this is no longer the case.

In the 4th Quarter 2017 FNB Estate Agent Survey, the secondary home demand percentage was mildly lower than in the prior quarter, representing the 3rd successive quarter of decline.

The Sectional Title Home Market appears to be opening up a wider gap in terms of the house price inflation differential between itself and that of the Full Title Home Market.