The South African Reserve Bank’s decision to lower the interest rate is a welcome relief for the property market, stimulating increased buyer activity and bringing much-needed affordability to first-time buyers and investors.
Lynne Krawchuk, CEO of Under One Roof, says the decision will have a positive impact across the board. “With lower borrowing costs, first-time buyers and investors are more likely to enter the market and expand their property portfolios. Affordable housing areas and regions with high rental yields will likely see a surge in demand,” says Krawchuk.
She says now may be the time for hesitant buyers to act. “Competition will likely increase as buyers on the fence rush to take advantage of more favourable lending conditions. For those already looking to buy, now may be the best time to secure a property before prices rise again.”
Krawchuk points out that the market may soon become more competitive for sellers too. “As more buyers enter the market, we could see a flood of new property listings. Sellers should price their homes competitively and ensure their properties are in top condition to stand out in what could quickly become a buyer’s market. For those selling, consult an estate agent for sound advice. Look at the typical sale price of properties similar to yours over the past 6 to 12 months. What have they sold for, and what are they currently being priced at? Your agent will have valuable insights to guide you in pricing your property competitively,” she says.
Estate agents are likely to see a welcome shift in momentum. “Agents have been waiting for this news, and it’s likely to breathe life back into the market after months of hesitation.”