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Unchanged rate signals strengthening buyers’ market

Woodhill homeThe latest decision by the Monetary Policy Committee of the South African Reserve Bank to leave the repo rate unchanged has been welcomed by South Africans. This means that the repo rate remains at 7% with the prime lending rate at 10.5%.

This decision did not come as a surprise to the market, given the fact that the Consumer Price Index (CPI) has remained stable while the rand recovered some of its losses. Considering the fact that the current economic and housing market outlook remains flat, the third consecutive meeting with an unchanged rate is allowing consumers and homeowners to breathe a collective sigh of relief. At the same time prospective buyers are set to benefit from the fact that the housing market is likely to stay a buyer’s market for the time being at least. Experts are advising buyers to buy now, as price growth is unlikely to slow further, but to still apply caution.


Adrian Goslett, regional director and CEO of RE/MAX of Southern Africa.

Adrian Goslett, regional director and CEO of RE/MAX of Southern Africa.

“Consumers who are able to reduce their household debt-to-income levels have an increased chance of showing the necessary affordability levels to purchase a home. While it may be difficult to adjust to a more restrictive financial plan at first, it will bring them a step closer to owning a home. Affordability continues to be a driving force behind the property market, a rate hike would negatively impact that” – Adrian Goslett, regional director and CEO of RE/MAX of Southern Africa

 


Dr Andrew Golding, CE of the Pam Golding Property group.

Dr Andrew Golding, CE of the Pam Golding Property group.

“Spring is here and traditionally this is a time when many people start considering selling, buying or relocating and as a result, it is a general truism that the market picks up from September. It remains to be seen whether this pattern reflects once more given that there are other factors at play (consumer affordability, bank lending criteria, consumer sentiment) that will have an influence.” – Dr Andrew Golding, CE of the Pam Golding Property Group

 

 

 

 


Seeff chairman, Samuel Seeff.

Seeff chairman, Samuel Seeff.

“We do not foresee anything in the short-term that will bring home prices down further so it is indeed a good time to buy. The banks are still lending and there is still time for buyers to get onto the property ladder, but caution is now the order of the day.” – Samuel Seeff, Seeff chairman

ungerermariette@gmail.com

Mariette Steynberg is a qualified economist with a post-graduate diploma in financial planning. She has enjoyed working on holistic financial plans for clients in various stages of life, as well as a development economist assessing the socioeconomic impacts of new developments. When she is not working, Mariette enjoys parenting her quirky, delightful toddler girl. Cloth diapering, Eskimo kisses and the importance of reading to your child are all causes close to her heart. Mariette is passionate about financial education and hopes to use the experience she has gained to share knowledge with HomeTimes’ readership. Her goal is to provide information that is implementable by everyone.

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