In summary nothing more than a stable year with first time buyers continuing to grow and dominating pressure in middle income house prices, as well as banks getting a little stricter on lending criteria.
In 2013, the property market is expected to show moderate growth, and prospective buyers would do well to have a deposit to bring to the table, says ooba, South Africa's biggest bond originator.
"House price growth is expected to continue to show moderate growth during 2013, with significant activity continuing in the first-time buyers market, says Saul Geffen, ooba CEO.
In 2012, first time buyers averaged at 52.7% of home loan applications and a record 54% was recorded in September 2012.
The average nominal house price recorded by the oobarometer in the 12 months to December 2012 grew 3.9% year on year, from R830,641 in 2011 to an average of R862,940 in 2012.
"Both the global and the domestic economy remains under significant pressure, household debt remains at a high level and nominal house prices continue to grow at a muted pace," explains Geffen. "We anticipate that lenders will continue to adopt cautious lending practices during 2013."
The buyer's market is expected to persist in 2013. "Potential buyers should ensure that they have the ability to access a deposit as lenders continue to fine tune credit policies with a focus on loans below 90% loan-to-value," says Geffen.
This ties is with Property Network expectations and those who have held on expecting boom times on property are advised to rather sell now while bank criteria is at moderate level rather than wait until buyers are further restricted in getting bonds.
Those that can afford to wait until a real uoswing happens in the market will have to do so until probably mid year 2014 says Deirdre Fibiger, pricipal and CEO of Property Network.Back to Property News Summary Page View my Personal News Here