House prices falling despite increased demand

According to Multinet Home Loans, the bond originator has seen an unprecedented increase in home loan submissions since the level 5 lockdown in April.

There has been a substantial 36.57% increase in submissions vs 2019 numbers in June, while home prices have shown a real decline of 12% in June, taking predicted inflation into account. Residential mortgage books for the banks are poised to perform better than expected. Falling house prices combined with low interest rates have created one of the best times for consumers, not impacted by the pandemic, to enter the housing market in over 50 years.

While demand has grown, house prices are declining, indicating that many consumers are either forced to scale down on investment properties or need to sell their homes due to reduced income as a result of the pandemic.

“While the market looks to be recovering sooner than expected, it’s important for homeowners looking to sell their properties to get the best advice possible on what they can expect during these times when it comes to property prices,” says Shaun Rademeyer, CEO, Multinet Home Loans.