{"id":126889,"date":"2016-06-14T13:38:49","date_gmt":"2016-06-14T11:38:49","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=126889"},"modified":"2016-06-14T13:44:41","modified_gmt":"2016-06-14T11:44:41","slug":"thinking-of-buying-a-house-not-so-fast-say-sa-banks","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/126889\/thinking-of-buying-a-house-not-so-fast-say-sa-banks\/","title":{"rendered":"Thinking of buying a house? Not so fast say SA banks"},"content":{"rendered":"

New data on new mortgage lending from the South African Reserve Bank shows a significant year-on-year decline – which is in line with numerous indicators of residential activity pointing to slowdown in the property sector.<\/p>\n

The June 2016 SARB Quarterly Bulletin showed the value of new residential mortgage loans granted have declined by 14.57% year-on-year for the 1st quarter of 2016.<\/p>\n

“This is significantly slower compared with positive growth of 15.2% year-on-year in the previous quarter, and now reflecting a very significant turnaround since the 50.2% year-on-year multi-year high reached in the 1st quarter of 2014,” said John Loos, household and property sector strategist at FNB.<\/p>\n

Both the commercial and residential sub-components were \u201cdrags\u201d on the growth rate in the 1st quarter. The value of residential mortgages granted declined by 13.8% year-on-year, while that of commercial mortgages declined by 14.9% in the same quarter.<\/p>\n

Both these sectors\u2019 negative growth rates reflect a significant slowing on the prior quarter\u2019s positive growth.<\/p>\n

StatsSA last week reported South Africa recorded a negative growth rate of -1.2% in the first quarter of 2016,while the country’s unemployment rate increased to 26.7% of the labour force, up 2.2% from the previous quarter.<\/p>\n

Read: This one graph shows that South Africans are leaving the country<\/a><\/strong><\/p>\n

Loos pointed out that for the residential mortgage lending sector, the 1st quarter of 2016 was the 3rd consecutive quarter of growth slowdown in the value of mortgage loans granted.<\/p>\n

The property market analyst said that the residential market is arguably the more \u201cleading sector\u201d, with home loans applicants responding more swiftly to any economic or interest rate changes.<\/p>\n

“This market has long since begun to respond to rising interest rates since early-2014, as well as to four years of deteriorating economic growth, and slowing growth in new residential loans granted had for a while suggests that commercial grants would soon follow that trend at a later stage.”<\/p>\n

\"FNB<\/a><\/p>\n

More on property in SA<\/h3>\n

Why Cape Town\u2019s property market outperforms the rest of South Africa<\/strong><\/a><\/p>\n

SA rich balk at house prices in major metros<\/strong><\/a><\/p>\n

How long it takes to sell a house in South Africa<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

New data on new mortgage lending from the South African Reserve Bank shows a significant year-on-year decline – which is in line with numerous indicators of residential activity pointing to slowdown in the property sector.<\/p>\n","protected":false},"author":10,"featured_media":119077,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[76,26,3619],"class_list":["post-126889","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-fnb","tag-headline","tag-sarb"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/126889","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=126889"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/126889\/revisions"}],"predecessor-version":[{"id":126901,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/126889\/revisions\/126901"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/119077"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=126889"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=126889"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=126889"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}