Property News:
2005 was a great year for the South Africa residential property market. At one stage house prices were growing by 35% in October and although this has slowed down to 10% in December it remains way above inflation.
Sellers are wondering if 2006 will be able to sustain this kind of house price growth.
Low interest rates were key to the big property boom last year, consumer confidence was high as more people could afford to buy houses.
Most of the SA Home Loan providers experienced record numbers of home loan applications in 2005 and if rates remain low we could even see those number increasing.
But some property experts are expecting prices to return to normal levels. Mike Spencer, of Platinum Global believes buyers will have more time to pick and choose before buying and the number of sellers and buyers will be more evenly balance.
Meanwhile, estate agents are reporting a small boost in property prices in Cape Town. According to moneyweb.co.za, Cape Town residential property market enjoyed a roaring December.