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Second quarter statistics (Q2 2017) from ooba, South Africa’s leading bond originator, show nominal positive growth year-on-year of 3.6% in the Average House Purchase Price.
South Africa’s largest bond originator, ooba, has released its property statistics for the first quarter of 2017 (Q1 2017).
2017 looks to be a challenging year for the South African property market, as quarterly statistics released by ooba, South Africa’s largest bond originator, point to ongoing affordability constraints for South African consumers.
Holding the repo rate steady at today’s Monetary Policy Committee meeting today (24 November 2016) was the right decision and one which is expected to help boost consumer confidence at a time of the year when many are planning and making career and lifestyle decisions for the year ahead, says Dr Andrew Golding, CE of the Pam Golding Property group.
Quarterly property statistics released by ooba, South Africa’s largest bond originator, show that residential property price growth is slowing as the supply of residential property outstrips purchasing demand.
Second quarter 2016 statistics released by ooba show nominal house price growth of 2% year-on-year compared to the second quarter of 2015.
While it appears South Africa’s repo rate still remains in a rising cycle, today’s decision by the Monetary Policy Committee to pause and keep the rate stable makes sound economic sense given the stagnant economy and ongoing cost pressures exerted on consumers, says Dr Andrew Golding, CE of the Pam Golding Property group.
Although ooba’s property statistics for February indicate year-on-year growth in house prices, slower year-on-year price growth trends are emerging.
Ooba says the decision today by the South African Reserve Bank to increase interest rates by 0.5% from 6.25% to 6.75% will negatively impact the residential housing markets as many consumers are already facing increasing financial strain through dealing with elevated levels of debt and the rising cost of living expenses.
Property statistics for the fourth quarter of 2015 released by ooba, South Africa’s largest bond originator, show house prices continued to grow in excess of inflation as the demand for residential property remained buoyant despite a weakening economy.