Perceptions regarding residential market conditions, as measured by the Absa Homeowner Sentiment Index (HSI), were in the fourth quarter of last year slightly better compared with those in the preceding quarter, with sentiment also much in line with the last two quarters of 2016.
The latest trends in property market sentiment came against the background of local political developments towards the end of last year as well as some greater optimism regarding economic prospects in view of recent trends on this front. The overall HSI score, based on the percentage of survey respondents displaying positive market sentiment, increased to 82% in the fourth quarter of last year from 81% in the third quarter.
Based on expectations of a better economic performance, inflation to remain within the inflation target range of 3%-6%, stable to possibly slightly lower interest rates and a hopefully more stable political environment in 2018, overall confidence levels and property market sentiment are forecast to gradually improve during the course of the year. Such developments will be reflected in higher property market activity, transaction volumes, property price growth and demand for and growth in mortgage finance.
Read more here: Absa Homeowner Sentiment Index Q4 2017