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House prices rocked by biggest fall in 15 years
Business Day - South Africa
The ailing South African residential property market was hit by more bad news yesterday, with new figures showing real house prices took their biggest plunge in 15 years in May.

With no quick end in sight to rocketing inflation and interest rates that have knocked the economy, struggling homeowners can expect things to get worse before they get better.

Another 50 basis-point interest rate hike is on the cards at next month's Reserve Bank monetary policy committee meeting, and there may be yet more hikes before the year ends.

According to the latest Absa house price index, real house prices in the middle segment of the market dropped 6,3% year on year in May, the largest drop since real house prices dropped 7,4% year on year in April 1993.
Business Day

Chancers now cropping up in bond origination sector
RodneyHayter.com - South Africa
The mortgage loan business is being plagued by "chancers", says Anthony Smook, MD of the Paarl headquartered bond originators, A Mortgage Loan.

Smook said that in recent weeks he has come across three cases of origination consultants invoicing clients for fees for obtaining a bond for them.

"This," he said, "is illegal and unjustified. Consultants are paid a commission by the bank or financier for every successful bond application - and that is the only remuneration to which they are entitled."

Credit act 'saved' SA
Fin24.co.za - South Africa
Johannesburg - While the effects of the 13-month old National Credit Act (NCA) have had a detrimental effect on property sales, its introduction has outweighed many of its negative consequences, Jose de Abreu, a senior partner at De Abreu and Cohen Attorneys, said on Wednesday.

De Abreu said he was "in little doubt that any delay in introducing the act would have piled on the runaway credit agony for homeowners.

"That it came in the midst of the current upward interest rate cycle... has proven a saving grace for many by forcibly protecting them from sinking into further debt."

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