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 Apr 2017
      Various major milestones have been reached at Bardale Village, where the developers, Integrated Housing Developers’ (IHD) plan for a fully integrated area is coming to fruition.
    • 25 Apr 2017
      You have been looking for the ideal property to purchase for months and finally find it, but there is a catch, there is a tenant who is currently renting the property. What now?
    • 25 Apr 2017
      Many sectional title schemes have a recurring problem in common, and that is the debate of who decides on the parts of the scheme that will be allocated to parking, who is allowed to use these bays and who is responsible for their maintenance, says Michael Bauer, general manager of property management company IHFM.
    • 25 Apr 2017
      Unless you have the cash saved up, constructing a home is going to require getting a loan from a financial institution called a building loan. Essentially, a building loan can be used to finance the construction of a home, additions to an existing property or renovations.
    • 24 Apr 2017
      Approximately R16.232 billion of investment has, conservatively, been committed to the Cape Town Central City since 2012, spanning between that year and 2019. This is according to the latest edition of The State of Cape Town Central City Report: 2016 – A year in review, released this week.
    • 24 Apr 2017
      The weather might be cooling but for R2 million you can buy some pretty hot properties across South Africa’s greatest cities!
    • 24 Apr 2017
      As a new buyer on the market, it can be very tempting to dive straight into the show house circuit, but a little preparation can go a long way towards finding that perfect home. Bill Rawson, Chairman of the Rawson Property Group, shares his tips on house hunting for a property that lives up to all your hopes and dreams.
    • 22 Apr 2017
      When you apply for a home loan, lenders will look at many factors before deciding whether to approve your application or not - and if you don't "pass the test" for any one of these they are quite likely to turn you down.
        
    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