Experts discuss recent decision on repo rate
This year seems to be getting off to the right start in the property market, with the decision to keep the repo rate on hold being praised all around – and the news will also be welcomed by those looking at selling or buying property in Rosebank.
After a tough 2018, it seems that 2019 is getting off to the right start in the property market, with the decision to keep the repo rate on hold being praised by various industry experts – and will also be welcome news to those looking at selling or buying property in Rosebank.
South Africans had to deal with a bump to the interest rate back in November, however, if you have been staying up to date on Private Property’s website with news relating to the market, you will have seen that a further increase is not on the cards.
In an article in January, they spoke to the Seeff Property Group, who provided feedback on the Reserve Bank Monetary Policy Committee’s decision to keep the rate on hold. This means that it will stay at 6.75% (base home loan rate at 10.25%).
This plays into the theme that Seeff has given to 2019, naming it the ‘year of great expectation’. They came to this conclusion due to the fact that the rand has become reasonably stable, while fuel prices have continued to drop and Moody’s did not downgrade the credit rating. Although, they do admit that inflation is a concern, but barring any shocks, there are signs of positive movement forward.
They also looked at the “have to buy and have to sell” sectors of the market, indicating that they expect business to continue as per usual, despite a prediction for a slower first half of the year. This sector includes homes priced at between R1m and R3m, and they said that sellers can expect their properties to move if they are well priced.
Their advice to sellers is to pair with local experts in the area though, as they will have a better understanding of current trends, and will assist in helping make the process smoother in the tough climate.
