select
|

Property market still favourable for buyers

Consumers are able to enjoy the current interest rate for a while longer, as Reserve Bank Governor, Gill Marcus, announced yesterday at the third Monetary Policy Committee meeting of the year that the prime interest rate would remain at its current 9%. The repurchase rate will remain at 5.5%. 

While this will come as a relief to consumers, economists are still expecting the rate to be hiked throughout the remainder of 2014, says Adrian Goslett, CEO of RE/MAX of Southern Africa.
 
“Unfortunately with the weakness in the currency and inflation pressure, the Reserve Bank will have little choice but to raise the interest rates in the near future,” says Goslett. “The Reserve Bank Governor has made it clear that consumers should expect to see rate hikes in possible varying increments during the remainder of the year.”
 
He notes that it is likely that these future rate hikes will have an effect on the property market to a degree, considering that most aspirant homeowners will require finance to purchase a property. “The increased cost of credit could hold some buyers back a while longer, however there is a strong indication in the market that consumers are confident in the property market and are eager to get their foot in the door. Currently property sales are still performing well with demand outstripping supply in many regions throughout the country, proving that South Africans still value homeownership.”
 
Even though house prices are only seeing marginal gains this year, Goslett says that even a small value increase points to a more stabilised environment than we were experiencing a few years ago. “Property price growth is important for those who currently own property; however property remaining within an affordable range is equally important for potential first-time buyers.”
 
According to Goslett current interest rates are still highly favourable for buyers and will only make a noticeable impact on the market if they are raised significantly. He notes that affordability levels are of greater concern for the future of the property market. “While future rate hikes are likely to place more pressure on buyers, reducing debt levels will increase the applicant’s chances of bond approval and make affording a home far easier.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 25 Feb 2017
      Accurate property value estimation is often considered an art as much as it is a science – it’s not always easy to pin down that mysterious “x factor” with hard statistics.
    • 24 Feb 2017
      The appointment of the conveyancing attorney is an important decision when selling your home. The conveyancer has to deal with all the parties to the transaction and coordinate a number of processes so that everything comes together at the right time.
    • 24 Feb 2017
      Each month homeowners receive a bill for the rates and taxes applicable to their property, but what are these municipal rates used for and how is the amount worked out?
    • 23 Feb 2017
      There is no denying that the beautiful and historic Bo Kaap is South Africa’s most colourful ‘hood - but in South America there is a town that many considers the most colourful town in the world.
    • 23 Feb 2017
      If the City of Gold is calling your name and you are wondering where you are going to hang your hat at the end of a busy day then wonder no more as we take a look at five new properties for sale in Johannesburg.
    • 23 Feb 2017
      While the increased transfer duty threshold is a welcome relief, real estate experts all agree that it is not all good news for the home owners.
    • 23 Feb 2017
      Minister Pravin Gordhan had a difficult budget speech to deliver on the 22nd of February as the economy struggles through its largest under performance since the 2009 recession, with the added challenge of a R30.4bn tax shortfall. The economic growth forecast remains unchanged at 1.3% for 2017, 2% for 2018 and 2.2% for 2019.
    • 22 Feb 2017
      Finance Minister Pravin Gordhan announced today that properties under R900 000 will not attract transfer duty tax - this was previously R750 000.
        
    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