Residential property sales slowing down

The boom in the residential property market has come to an end as estate agents are reporting changes in sales of homes.

The lower end of this market is said to be suffering the most and the latest interest rate hike is expected to make matters worse.

Managing Director of Eskel Jawitz Russel Berk says his company sells homes mostly in the middle and upper end of the market. Berk says he has noticed changes in sales at all levels of the market, including the upper end. He says the middle market at the moment is on average taking 50% longer to sell.

In May 2006 before the rate hikes, a home loan of R600 000 cost R5 990 a month. Since rate increases in June, monthly repayments rose to over R7 000. From next month, it will be just under R8 000. The lower end of the market is taking a huge knock after months of superior performance.