After reaching a recent high in the fourth quarter of 2017, the level of positive sentiment regarding conditions in the South African residential property market remained on a gradual downward trend up to the third quarter of 2018.
The overall national Homeowner Sentiment Index score, which reflects the percentage of survey respondents with positive sentiment regarding market conditions in the country, was marginally lower at 72% in the third quarter of the year compared with 73% in the second quarter.
The Homeowner Sentiment Index sub-indices were all lower at a national level in the third quarter compared with the first and second quarters, indicating that consumers remained well aware of market conditions and influencing factors, which made them more wary of engaging in property-related transactions up to the third quarter of the year.
Various economic and consumer-related factors impacted property market sentiment over a wide front up to the third quarter of the year, with the prospect of continued subdued market sentiment towards year-end and in 2019, 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 3 2018