Jozi Home Market Still on the Slow Side

October 7 - Estate agents in Johannesburg report that business is still slow, but things are picking up, according to First National Bank's Joburg Residential Property Barometer released this week.

FNB said that the third quarter report showed that there was a definite increase in residential market activity during this time period, and that confidence levels were also steadily improving.

"It would now appear that the positive effect of five percentage points worth of interest rate cuts since December 2008 is increasingly being felt in the property transaction volumes, with banking sector relaxations in lending criteria also playing a positive role," said the bank.

The relaxed lending criteria was the banks' response to interest rate cuts by the Reserve Bank, noted FNB.

Nevertheless, activity levels are slightly slower when compared to the rest of the country.

"Although confidence levels are steadily improving, Joburg survey respondents are slightly less upbeat with regard to activity level," said FNB.

Sellers were more realistic when it came to their asking prices on properties, according to the information.

"The greater realism may not only be due to sellers setting prices lower, but also due to the market catching up to price levels, therefore making previously unrealistic price levels now a little more realistic in a stronger market," advised First National bank.

10/7/2009 9:16:06 AM