The property market, along with most others sectors, has been hard hit by spiraling interest rates, climbing inflation and rocketing fuel prices. However, all is not gloomy.
Yes, economists predict that inflation will continue its upward march and there are no guarantees that this will be the last interest rate hike this year. But things will change.
The property market will always be a tale of two markets. No-one can deny that it reacts to sentiment and, at present, it favours buyers. A good indication of this is the fact that we are sitting with over 26 000 listings on our website from 18 000 at this time last year.
However, this situation will not prevail indefinitely and change may not be as far off as people believe. If interest rates stay the same or begin to level off, the market could begin recovering early next year, ultimately favouring the seller again.
High interest rates and inflation are also not the only factors determining property prices. The build up to the 2010 Soccer World Cup could begin impacting positively on the property market in as little as a year. That is why sellers need only be patient. We are confident that it won’t be too long before prices reflect the true values of properties on the market and sellers can look forward to realising the true worth of their assets.