select
|

Unchanged Interest Rate Leaves Homes Market Static Says Leapfrog’s Ennik


While the decision by the SA Reserve Bank to hold interest rates unchanged is  in line with the consensus among economists and home market analysts  – and therefore comes as no surprise – it holds little cheer for the residential property sector says Ronald Ennik, a director of the nationwide Leapfrog Property group.



“Given the current economic fundamentals, a cut at this stage may well have been a bold move. Nevertheless, it would have brought a much-needed measure of relief to debt-burdened  homeowners. It would also have provided added traction to what has been a generally languid residential property sector,” says Ennik.




 “Cash-strapped higher income owners of homes in the upper end of the residential market – which has been the hardest hit by the economic recession – will be particularly disappointed. As long as this sector is in the doldrums, the market recovery as a whole will remain slow,” says Ennik.



“Nevertheless, it is essentially confidence and sentiment – and not interest rates – that are the biggest driver of home buying. Until we see an uptick on that front, the market seems set to remain more or less static in the nearer term, with home values marking time in the lower end of single digit growth,” Ennik concludes.



  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 22 Nov 2017
      Most people know of the Community Schemes Ombud Service (CSOS) and that levies must to paid to fund its operations. In this article the experts at Paddocks will address some of the issues that are causing confusion.
    • 22 Nov 2017
      While sales have noticeably slowed in most sectors in most Cape town suburbs, the security estate sector in Constantiaberg has bucked the trend by remaining buoyant, with sales by August this year already surpassing total sales in 2016.
    • 22 Nov 2017
      The end of the year is fast approaching, and so are all the travellers, tourists and holidaymakers. For those who live near or own a property in a holiday-hotspot, the festive season also brings with it an abundance of short-term rental opportunities. Its a great way for property owners to make a few extra rand for their own holidays or to put towards their savings.
    • 21 Nov 2017
      The buying process is over, and the moving truck has delivered your household goods to your new property. Now it’s time to unpack and turn your new house into a home.
    • 21 Nov 2017
      When an offer to purchase a property is signed by both buyer and seller, this constitutes a binding agreement or “Deed of Sale” between the two parties. However, in most cases the “standard contract” might not be enough to cover all the specifics pertaining to the sale. The agreement may require some additions or alterations to clauses, which needs an expert hand in the drafting of such
    • 21 Nov 2017
      As more and more South Africans look to invest in property abroad, Spain is offering them one of the best deals in global real estate.
    • 20 Nov 2017
      Since 2012, sectional title complexes have been leading the South African property market, not only in terms of price growth, but sales volumes as well. Remaining relatively strong, even in the face of 2017’s political and economic turmoil, experts say this market segment could offer valuable insight into South Africans’ property purchase priorities.
    • 20 Nov 2017
      Regardless of whether you are purchasing your first start-up home, downsizing or moving in with roommates, finding ways to maximise small spaces can be a big advantage, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK