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Johannesburg - Although house prices may have reached a turning point, the property industry will long continue to reel from the broad consequences of the economic downturn.
Estate agents have reduced dramatically in number as transactions have seriously declined.
This has largely been because banks' strict lending criteria and deposit requirements have restricted prospective home buyers' access to finance.
Dr Andrew Golding, chief executive of Pam Golding Properties, reckons there are signs that banks are becoming more open-handed, leading to some renewed optimism in the housing market.
But he says this is light years removed from the confidence during the boom.
According to figures from the Estate Agency Affairs Board there were more than 80 000 estate agents when the market was at its peak. Neville McIntyre, executive chairman of property group Jigsaw, estimates there are now about 20 000 active agents remaining in the field, and this number may still decline.
He says the effect of a growing market will not become visible within the next six months. "We are seeing more realistic prices and better negotiations between buyers and sellers than in the past."
Jonathan Smiedt, chief executive of the ClareMart Auction Group, reckons the recent surprise interest-rate cut will stimulate interest in the housing market.
Home-loan instalments have already dropped 25% since December, thanks to the rate cuts. O
ne of the most significant obstacles to a full recovery remains, however, the restricted access to finance which is keeping many buyers out of the market.
An indication that banks are becoming more open-handed is the fact that fewer applications for home loans are currently being rejected.
Mortgage originator ooba recently reported that in July banks rejected only 47.3% of all home-loan applications, compared with 52.4% a year ago.
- Sake24.com
For more business news in Afrikaans, go to Sake24.com.
