After declining in the first quarter of 2018 from late last year, the level of positive sentiment regarding conditions in the South African residential property market dropped somewhat further in the second quarter of the year.
The overall national Homeowner Sentiment Index score, which reflects the percentage of survey respondents with positive sentiment regarding residential property market conditions in the country, declined to 73% in the second quarter of 2018 from 75% in the first quarter and 82% in the fourth quarter of 2017.
The Homeowner Sentiment Index sub-indices were all lower in the second quarter of 2018 compared with the first quarter, with these trends indicating that consumers remained relatively cautious about property market conditions and influencing factors up to mid-year.
Economic-related factors impacting consumer finances and the aspect of land reform are expected to contribute to relatively subdued residential property market sentiment in the second half of the year compared to the corresponding period last year, which will be reflected in levels of market activity, buying patterns, transaction volumes, property price growth and the demand for and growth in mortgage finance.
Read more here: Absa Homeowner Sentiment Index – Quarter 2 – 2018