Premium Only Content
Distressed property sales rising fast in SA
The number of South Africans who have been forced to sell their homes because they can no longer keep up with their bond repayments is rising rapidly.
And many more on the brink of selling are watching the upcoming interest rate decisions.
In the first three months of this year, 17% of sellers were giving up their homes due to money issues, but the latest figures show this figure to have climbed to 24% for Q2 2023.
This is 6% higher than the historical average of 18%, and just 6% lower than the 30% reported in the last three months of 2022.
It is also 4% higher than the same period last year, says FNB property economist Siphamandla Mkhwanazi.
As expected, sales due to financial pressure are disproportionately higher in the affordable market segment, with an estimated 32% of sales for this reason.
“This reflects the impact of the sharp increase in debt servicing costs, which should have a more pronounced impact on lower-income households.”
Richard Gray, chief executive of Harcourts South Africa, says the number of people selling because they can no longer afford their homes depends on the price bracket.
In the mid- to lower-market, the proportion is far higher at 20% to 30% compared to the higher price brackets where the proportion is about 10% to 15%.
Since last year, the numbers have “definitely increased”.
“The primary reason has been the increase in the prime lending rate but is also coupled to other factors such as load shedding, fuel prices and general cost of living.
We have also seen an increase in bank-assisted sales where clients have fallen behind on their mortgage payments,” he said.
-
1:34:49
Redacted News
4 hours agoThis is SHOCKING and is now being COVERED UP in real time, this is criminal | Redacted News
120K264 -
1:00:23
Ryan Long
7 hours agoRyan Long - Problem Solved (FULL STANDUP SPECIAL)
33.8K25 -
23:47
SLS - Street League Skateboarding
5 hours agoSuper Crown Finalist: Rayssa Leal | Best of the 2024 SLS Championship Tour, so far…
50.8K7 -
DVR
LFA TV
21 hours agoAs Prophesied: The World Realigns | Trumpet Daily 12.10.24 7PM EST
5.83K1 -
LIVE
Quite Frankly
8 hours ago"Heroes, Villains, Drone Invasion, Open Lines" 12/10/24
1,174 watching -
LIVE
The Big Mig™
2 hours agoU.S. Energy Independence Now!
1,265 watching -
5:05:08
StoneMountain64
7 hours agoMaking EASY money in the HIGHEST stakes game out
63.2K5 -
12:27
Chris From The 740
12 hours ago $0.56 earnedWhat Makes COX ARMS EMR-1 The BEST Choice for You?
15.8K4 -
5:10:23
Pepkilla
7 hours agoRanked Warzone ~ Testing out Rumblelabs ALERTS ~
34.9K7 -
1:22:18
Awaken With JP
7 hours agoHunting CEOs for Sport - LIES Ep 69
125K78