During South Africa's lockdown, the average house price went into a rapid decline, with low expectations of a swift recovery. Several months later, prices are bouncing back, launching into a growth trajectory into the double digits.
Independent bond broker, Multinet Home loans, has seen double-digit growth in average approved loans between 2020 and 2019, says CEO Shaun Rademeyer.
" With the economy in recession, the housing market began the year slow with average house prices in decline. However, things started looking up. Before the country went into hard lockdown the housing market was showing a steady increase in bank competitiveness which resulted in higher loan to values being granted and first-time buyer propositions were becoming more prevalent among the major South African banks. “We could see this with an increase in accepted bond grant rate of 56.89% compared to the previous year’s average of 52%. March’s price increase followed on from the recovery we were seeing until the country went into lockdown,” Rademeyer says. "
Read the full article here: House price growth in double digits
