Home-buying market showing resilience, for now

Home-buying market showing resilience, for now

  • Interest rate-induced demand remains strong; internal data shows bias toward middle-income segments.
  • Data from the FNB Estate Agents Survey and FNB’s Property Valuers database both show continued growth in demand and retreating supply.
  • Incidents of downscaling due to financial pressure remain elevated, although lower compared to during the GFC. Latest data shows these to have increased slightly in higher-income categories, but moderated in lower-income categories in 1Q21.
  • Rental market pressures persist; vacancy rates are climbing and rental escalations slowing. Anecdotal evidence shows that some of this stock is being released into the market for sale.
  • Labour market weaknesses remain a major concern. Latest job numbers revealed that losses have migrated to more “white collar” workers.

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