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Johannesburg - People hoping to buy homes for the first time are struggling to get into the property market.
According to the First National Bank residential barometer briefing, released on Monday, first-time buyers are generally affected by affordability.
The report noted a steady decline in the proportion of first-time buyers entering the market, shifting from 32% in the middle of 2005, to only 16% in the second quarter of this year.
"The combination of the National Credit Act (NCA) and recent interest rate hikes has curtailed activity in this segment of the market, due to stringent affordability assessments and qualifying criteria," read a briefing statement.
It added that 43% of real estate professionals claimed that applicants were struggling to qualify for home loans in the lower priced segment of the market.
"Sixty-seven percent claim qualification and affordability issues are becoming significant hurdles for this market to secure funding.
"However, industry professionals operating in the upper end of the market affirm that their customers are more immune to the effects of the NCA, largely due to the proportion of cash buyers in this market."
Sapa