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.
-
2:30:31
Price of Reason
15 hours agoJoe Biden to Pardon MORE Buddies? Will Disney APOLOGIZE to Johnny Depp? Ubisoft In Full CRISIS Mode!
85.9K8 -
1:11:59
The Charlie Kirk Show
11 hours agoTHOUGHTCRIME Ep. 65 — CEO Assassins? Day One of DOGE? 100k Bitcoin?
178K122 -
5:56:36
Akademiks
1 day agoLil Durk Co-D gets PROTECTIVE ORDER?? Spotify Drops Wrapped List. Who Won? Drake vs Kendrick?
105K15 -
1:17:57
Josh Pate's College Football Show
14 hours ago $16.38 earnedCFP Selection Chaos Coming | Latest Portal Intel | Busted Bold Predictions | Cole Cubelic Returns
49.1K2 -
1:20:46
Glenn Greenwald
14 hours agoJournalist Catherine Herridge On Her Judicial Battle To Protect Her Sources, The Need For The PRESS Act, And The Role Of Modern-Day Journalism | SYSTEM UPDATE #376
119K111 -
52:36
Man in America
16 hours agoThe SHOCKING Links: Hunter's Pardon, Ukraine, Biolabs, Covid & Color Revolutions w/ Jeremy Slate
79K42 -
2:04:43
Precision Rifle Network
1 day agoS3E10 Guns & Grub - What's in a name?
70.2K4 -
1:18:44
Flyover Conservatives
1 day agoIs History Warning Us? The Decline of Rome and Our Future! - Jeremy Ryan Slate | FOC Show
61.3K3 -
1:46:16
Roseanne Barr
14 hours ago $34.40 earnedTinfoil Hats with Sam Tripoli | The Roseanne Barr Podcast #77
98.6K193 -
1:03:03
Donald Trump Jr.
16 hours agoAmerica’s Health Crisis: It’s Time to MAHA, Interview with Calley Means | TRIGGERED Ep.196
142K135