The upswing in applications for mortgage bonds from the banks is a reality - but it may not be as significant as the bond originators and others who have recently published encouraging figures make out, says Lanice Steward, MD of the Cape Peninsula estate agency Anne Porter Knight Frank.
 
“In June at Anne Porter Knight Frank we saw a significant year-on-year upswing - which is good news, especially as the school holidays traditionally have a dampening effect on sales.  Our increases for June are roughly in line with those of ooba (51,3%) and we saw similar though not as great increases in May and April.
 
“However, the overall trend that we outlined in our recent statement about ten year cycles in our opinion remains valid:  the current increases, we predict, will only reach 2006 levels by 2013.”
 
The limiting factor on sales, Steward has already said, is not so much a lack of demand but a lack of bond finance.  However, she said, demand is being affected by the negative bank publicity.
 
“A situation has come about in which many people, especially those in the 20 to 30 year old age group, now do not even try for a bond because they have lost faith that they can get it.  We encourage such people to visit a good bond originator, such as ooba, who can often succeed where the applicant’s own bank may already have turned him down.
  
For further information contact Lanice Steward on 021 671 9120 or email lanice@anneporter.co.za.