Related Articles
Top Stories
Feb 13 2012 12:15
Miner Xstrata says it has brought forward maintenance on two furnaces to assist Eskom to save power.
Feb 13 2012 10:43
Although jobs were created, the economy is still 420 000 jobs short of the peak employment level before the 2009 global financial crisis, says Adcorp.
Feb 13 2012 07:58
Greek lawmakers have approved a new round of drastic austerity measures after a long day of street battles between police and protesters left dozens injured.
Johannesburg - Not only are house prices improving every month; the numbers of houses sold and home loans approved are steadily rising.
New statistics from banks, estate agents, mortgage originators and house-price indices showed the housing market has begun to feel the positive effect of the five-percentage-point interest-rate decline since December last year.
The relaxation of banks' lending criteria, which means that 100% home loans are again available, is also giving momentum to the demand for accommodation.
Luthando Vutula, the managing executive of Absa Home Loans, said there is no doubt that the housing market is resurrecting.
"From August to September the number of applications for Absa home loans increased by 18%." He said house prices reached at auctions are also 10% to 15% up.
Rudi Botha, chief executive of the PA Group, said the number of home loans facilitated by Betterbond and approved between August and September rose by 50%.
Adrian Goslett, assistant registrar of Re/Max Southern Africa, said September was the group's best sales month this year, with property sales totalling just under R900m.
He believed the market is well on the way to recovery because consumer sentiment has dramatically improved. "Those wanting to buy a house should consider it now; interest rates are lower and finance more readily available."
Coastal areas
Coastal areas, which were heavily impacted by the downturn in the housing market, are also seeing a revival.
The Eastern Cape office of Pam Golding Estates (PGE) in St Francis Bay notched up R35m in sales between June and September, the highest quarter in recent years. "This is double the sales turnover of the corresponding period last year," reported Richard Arderne, PGE's area principal.
On the house-price front a noticeable increase is evident in the different indices. First National Bank's house-price index showed an annual decline of 4.4% in September, considerably better than the revised 6.5% for August. At this rate the decline in house prices should be over by early next year.
Lightstone's house-price index indicated prices rose for the fifth successive month in May. Nominal house prices were 0.15% better in May than in April, although they were still 1.1% lower than in May last year.
- Sake24.com
For more business news in Afrikaans, go to Sake24.com.