Average Home Purchase Price For All Homebuyers Reaches A Record R1.6 million In July
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Guest - Colin Strumpher, Sales Manager at Better Bond
Momentum is building in the residential property market. July saw home loan application volumes jump 14% quarter-on-quarter and 12% year-on-year – the highest since Q3 2022. The BetterBond index of home loan applications is now just 8% below its 2022 peak. Further gains are expected as the latest prime rate cut from 10.75% to 10.50% begins to filter through in August. Lower borrowing costs are already improving affordability and encouraging renewed buyer activity.
The average home purchase price for all buyers reached a record R1.6 million in July, up 2.1% year-on-year. First-time buyers (FTB) also hit a new high of R1.3 million, with both increases outpacing July’s 3% inflation rate. However, deposit requirements moved higher: up 14% from Q2 for all buyers to R311,000, and up 5.8% year-on-year for FTB to R188,000. While still below early-2024 peaks, deposit trends will be one to watch as market activity strengthens.
Momentum is building in the residential property market. July saw home loan application volumes jump 14% quarter-on-quarter and 12% year-on-year – the highest since Q3 2022. The BetterBond index of home loan applications is now just 8% below its 2022 peak. Further gains are expected as the latest prime rate cut from 10.75% to 10.50% begins to filter through in August. Lower borrowing costs are already improving affordability and encouraging renewed buyer activity.
The average home purchase price for all buyers reached a record R1.6 million in July, up 2.1% year-on-year. First-time buyers (FTB) also hit a new high of R1.3 million, with both increases outpacing July’s 3% inflation rate. However, deposit requirements moved higher: up 14% from Q2 for all buyers to R311,000, and up 5.8% year-on-year for FTB to R188,000. While still below early-2024 peaks, deposit trends will be one to watch as market activity strengthens.
