It is important to understand that, due to significant resistance by home sellers to house price declines, in times of economic and residential demand slowdown the residential market can often move away from market equilibrium price.

Although the impending credit amnesty is aimed at making it easier for credit adverse individuals to obtain finance, South African banks are likely to become even more conservative as lenders have placed huge reliance on credit information from the credit scoring agencies.

South African non-bank lenders are experiencing an increase in the number of high-nett-worth consumers making use of short-term finance solutions, as an alternative lending option to the commercial banks.