Statistics Don't Buy Property. People Do.
Every week I sit across the table from buyers and sellers making what is often one of the biggest financial decisions of their lives.
They aren't asking me about loan-to-value ratios or average bond sizes.
They ask:
"Mary...is now the right time to buy?"
"Should we sell?"
"Are the banks still lending?"
Those are exactly the questions these latest home loan figures help answer, thanks to MultiNET and the awesome Amanda Bond.
The Banks Have Sent Us a Clear Message
They're open for business.
Despite all the gloomy headlines we hear, South African banks are actually lending more, approving larger home loans and continuing to finance almost the full purchase price for many buyers.
That tells me confidence inside the banking sector remains surprisingly healthy.
Banks don't lend billions of rand because they're optimistic.
They lend because they believe borrowers can repay.
That should give both buyers and sellers confidence.
Here's What Really Caught My AttentionEntry-level property prices have increased by more than 12% in just one year.
The broader market has also grown strongly.
Now, that's significant.
Normally we'd expect higher interest rates to slow the market considerably.
Instead, we're seeing buyers continue to compete for quality property.
Especially Right Here In Cape Town.
The Banks Are Competing Harder Than Some Estate Agents...
One statistic really made me smile.
Fewer buyers are simply accepting the first home loan offered by their own bank.
Instead they're allowing bond originators to negotiate on their behalf.
The result?!?
* Better rates.
* More approvals.
* Better monthly repayments.
Shopping around for a home loan today is a little like getting three quotations before renovating your kitchen.
You wouldn't accept the first quote. Why accept the first interest rate?
Here's Where National Statistics Don’t Help Us So Much
One mistake I see repeatedly is assuming South Africa is one property market.
It most definitely isn't.
Cape Town increasingly behaves like its own economy.
The buyers I work with in De Waterkant, Green Point, Sea Point and along the Atlantic Seaboard are often competing against:
• families relocating from Johannesburg
• retirees moving permanently to the Western Cape
• international buyers
• investors
• digital nomads
• professionals working remotely
That's a completely different buyer profile from much of the rest of South Africa.
A buyer purchasing well-positioned property in Cape Town today is not simply buying a home.
They're buying access to one of the world's most geographically constrained lifestyle cities.
Table Mountain isn't moving.
The Atlantic Ocean isn't moving.
Heritage areas aren't expanding.
Land is finite. they are not making any more it...
Demand isn't.
That is powerful.
So... Should You Buy?If you're financially ready...
Yes.
Not because I think prices will double or quadruple overnight.
But because banks are lending, buyers remain active and Cape Town continues to benefit from forces that don't exist elsewhere in South Africa.
Time in the market has almost always proved more valuable than trying to perfectly time the market.
And If You're Thinking Of Selling?The latest figures should give you confidence.
Qualified buyers are out there.
Finance is available.
Competition between the banks remains strong.
Well-priced homes continue attracting serious purchasers.
And finally...
One Last Thought
After more than thirty years in property, I've learned something that hasn't changed.
Markets rise.
Markets pause.
Interest rates move.
Headlines come and go.
But people will always need somewhere to live, somewhere to raise a family, somewhere to retire, somewhere to invest and somewhere to dream.
Helping them make that decision wisely, truly remains one of the greatest privileges of my career.
If you're considering buying or selling property in De Waterkant, Green Point, Sea Point, the Atlantic Seaboard or anywhere in the City Bowl, I'd be honoured to guide you through what may indeed be one of the most important financial decisions of your life.
Call me now.Mary Bailey
Property Practitioner | eXp Realty South Africa
[email protected]
+27 82 448 0632
"Pure Property. Personally."
