In the last quarter of 2023, the average national property price stood at about R1.4 million.
Which is a slight drop compared to the previous few months. But the size of home loans approved actually went up a little bit.
Interestingly first-time homebuyers seem to be saving more money before buying a house. The CEO of ooba Group, Rhys Dyer, said that more first-time buyers are busy saving up for bigger deposits. This is important because it might mean more people will buy houses once interest rates go down in the future (maybe later this year or early next year). Also, recent stats show that there are more properties being bought to rent out, and overall the banks are offering better deals on home loans.
The average interest rate offered by banks is now at -0.48% below prime, indicating a favourable lending environment for potential homebuyers. This suggests confidence from bank’s side and a willingness to compete for home loan market share, potentially benefiting buyers with lower borrowing costs.