The South African Reserve Bank to make the most of the favourable lending rate while it is in single digits.
What is undoubtedly a great time to sell for sellers within the R3 million rand and under market, Gary Phelps, Sales Manager at Icon Property Group, says that the Group celebrates the latest decision. With the predictions that the rate will only begin to climb toward the last part of 2021, it’s now an ideal time to purchase a property using bank finance, as repaying that home loan is now 30% more cost-effective than last year this time.
The unpredicted five cuts since January 2020 has led to the unexpected, but much needed, rebound of the property market. Instead of house price freefall and stagnant sales activity many expected in response to the pandemic, prices have strengthened – especially at the lower end of the market where demand is vital – and bond applications have exceeded pre-lockdown levels. There has been a noticeable increase in first time home buyers through the system, adds Phelps.
Phelps predicts that for the next 24 months, it is going to be a Hay-Day for Sellers, property developers and investors within the lower end market, as the shortage of stock will further contribute toward skyrocketing prices. Buyers must take caution when budgeting at this stage because we have seen this scene play out four times in the past 20 years, “in that what goes down, will eventually go up.”
Phelps echo’s that the property market made a remarkable recovery in recent months and that since more lockdown regulations have been relaxed, the mood has further taken a positive turn, and people are showing up in their numbers to compete for being the successful purchaser of properties, which IPG is marketing.