The impact of poor economic conditions
Poor economic conditions are causing consumers to default on payments, such as bond and loan repayments. The middle class are not only struggling to sell their homes, but they are also struggling to get their asking price.
There’s been a growth in the sale of homes below R400 000. However, homes below R1 000 000 and above R2 500 000 are currently on the market for longer.
Sellers are advised to hold onto their homes for now because of the unfavourable selling conditions.
The dire economy is impacting people’s financial priorities. The fact that people are defaulting on their secure asset payments is alarming. The property market is also being affected by more young people immigrating and investing in property overseas.
People are having to become more thrifty with their money to survive. Listen to the radio clip for more information.