{"id":696071,"date":"2023-06-25T09:20:20","date_gmt":"2023-06-25T07:20:20","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=696071"},"modified":"2023-06-25T09:20:59","modified_gmt":"2023-06-25T07:20:59","slug":"relief-for-first-time-homebuyers-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/property\/696071\/relief-for-first-time-homebuyers-in-south-africa\/","title":{"rendered":"Relief for first-time homebuyers in South Africa"},"content":{"rendered":"\n

New data from BetterBond shows that there has been a steady amount of home loan applications over the last year, and first-time homebuyers may find more promising buying opportunities in the medium term.<\/p>\n\n\n\n

The company’s latest property brief for June reported that although evidence showed a decline in inflation, the South African Reserve Bank (SARB) raised the interest rate by 50 basis points.<\/p>\n\n\n\n

“South Africans are optimistic that the recent decrease in the Consumer Price Index, falling below 7%, will bring an end to the ongoing cycle of interest rate hikes. This potential outcome could lead to a resurgence in the property market later this year and throughout 2024<\/strong>,” said BetterBond.<\/p>\n\n\n\n

According to BetterBond, there has been a decline in new home loan applications, particularly for first-time buyers – it said that this should be seen against the backdrop of a 68% increase in the cost of servicing debt since November 2021.<\/p>\n\n\n\n

The group said, however, that a combination of substantial formal job section creation over the first quarter of 2023 as well as the new downward trend in the inflation rate, could herald relief for homebuyers<\/strong>.<\/p>\n\n\n\n

The graph below shows the decline in the percentage of first-time home buyers:<\/p>\n\n\n\n

\n
\"\"<\/a><\/figure>\n<\/figure>\n\n\n\n

The average home purchase price for first-time homebuyers has remained lower than the majority of buyers, with it averaging around R1.2 million, R300,000 less than those who have previously purchased a home, at R1.5 million.<\/p>\n\n\n\n

The average home price has shown a consistent increase, with a 3% rise in the first five months of 2023 compared to the first quarter of 2022, reported BetterBond.<\/p>\n\n\n\n

However, there was a slight decline in the average home price for first-time buyers over the 12-month period leading up to May 2023, but it remained relatively stable and comparable to the year-on-year average.<\/p>\n\n\n\n

According to the company, the top three areas in South Africa in terms of the average home loan value for first-time homebuyers over the past 12 months have been:<\/p>\n\n\n\n