First-time homebuyers’ market recovering

0
43
PHOTO: 123rf.com

Despite high interest rates staring South African homebuyers in the face, the number of first-time homebuyers is recovering. This is according to Standard Bank.

The bank has noted a resurgence in first-time homebuyer activities in South Africa, which is believed to be driven by expectations of interest rate cuts.

Almost half of the home loans registered by Standard Bank in May were for first-time buyers. This includes home loans where at least one applicant was buying their first home.

Additionally, there was an increase in applications from first-time buyers in April and May, reversing the notable decline observed in the last months of 2023 and the start of 2024.

“The past three years have been challenging for homeowners,” said Toni Anderson, the Head of Standard Bank Home Services.

“It is encouraging to see a growing proportion of first-time buyers in our book,” she added.

Interest rates in South Africa averaged 11.85% from 1998 until 2024, reaching an all-time high of 23.99% in June of 1998 and a record low of 3.50% in July of 2020.

 

Compiled by Warren Hawkins

warren@mahareng.co.za