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FNB Property Barometer - Home Buying Estate Agent Survey
FNB - South Africa
Conflicting signals - Residential demand believed to be slightly stronger in the 3rd quarter, but price realism still appears to lack.

In conclusion, while agents point to a slightly better residential demand, they don’t indicate an improvement in the balance of demand relative to supply, which would suggest that house price growth is set to remain under some
Along with the slight demand rating improvement came a slight increase in the FNB Home Buying Confidence Indicator, which measures agents’ expectations of near term activity. However agents don’t appear strongly optimistic in the near term. Indeed, 23% of agents cite “economic stress and general pessimism” as a key factor in influencing their near term expectations, the single-most cited factor behind the positive of “seasonal factors” as the summer approaches. By comparison, a lesser 10% cite “positive consumer attitude” as a key factor.
We believe, therefore, that while the latest Estate Agent Survey demand reading is mildly encouraging, not too much should be read into it yet. Only after another few quarters’ surveys will we be able to see whether a sustainable “market stabilization” is setting in. In this regard, much will depend on the future state of the global and local economy.
FNB Property Barometer - Oldies Supporting Residential Supply
FNB - South Africa
In recent years, the FNB Estate Agent Survey has reported a steady rise in sellers “selling in order to downscale due to life stage”. What could be driving this?
Therefore, the mild improvement in the residential market since 2008 may well have played something of a role in driving this “life stage” group of sellers who are not always necessarily under pressure to sell. However, we
suspect it is more than merely cyclical. The combination of faster- growing over-50 age cohorts in SA relative to younger cohorts, along with more recent sharply rising home-related rates and utilities tariffs, is believed to be a
key contributing factor to a rise in estimated percentage of sellers selling in order to “downscale due to life stage”.
This trend can simultaneously be negative for the larger-sized home market but supportive of the smaller-sized home segment.

Homeloans for the highly indebted
Moneyweb - South Africa
Standard Bank has designed a product for those with impaired credit.

JOHANNESBURG – Standard Bank is piloting a rent-to-buy housing model in the affordable home segment, an initiative that is likely to help those with impaired records to qualify for home loans in the future.

“The model that we are interested in is deferred ownership for a while. It could be 12-18 months of rent but it will be as if they are paying the bond. We are just piloting it right now. We have agreed with one developer to put 100 people on the pilot,” Standard Bank’s Director of Affordable Housing Nicholas Nkosi said.

Nkosi said the affordable housing segment covered those who earn between R3 500 and R16 000 and properties of up to R500 000. With the rent-to buy model, a client would have to prove for a good number of months that they could afford to pay rent, rates and all other responsibilities that come with a home loan before the bank approved lending. So the customer would behave as if they are paying a bond although renting.


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