Whether you are thinking of buying, investing or selling right now, you will find that there are some really good opportunities in the property market, supported by a lower interest rate and continued favourable bank lending conditions.
Despite the sluggish economy, the broader picture offers plenty of positives. Inflation is still under 3%, and the Rand has strengthened, even dipping below R18 to the US Dollar despite the challenges with the USA. A more consistent electricity supply and the continued stability of the Government of National Unity also underscores a level of confidence.
Crucially, we have just had another interest rate cut, the fourth since the third quarter of last year. This means that the interest rate is now a full one percent lower than it was this time last year, giving household budgets, bond affordability, and the market a significant boost.
Importantly, while Seeff will continue to strongly advocate for further rate cuts, the Reserve Bank has indicated that it is unlikely that we will see further cuts this year as it contemplates adjusting its inflation targeting with the view to lower long-term interest rates. Buyers who have been waiting for further rate cuts might therefore lose out on good buying opportunities in the market right now, especially in markets such as the Gauteng metros.
If you are financially able to purchase property and you have been waiting for the right time, then now might just be it. Prices are not likely to be coming down. In fact, we continue to see improved price growth across the market, even in areas where prices have seen little to no growth such as the Gauteng metros, albeit still just marginal.
A recent ooba report to the Seeff Group indicates continued strong bank lending conditions, further underscoring our assessment that it is an ideal time to buy. Bank approval rates remain high, while deposit requirements are still low compared to pre-pandemic levels. Additionally, the banks still offer attractive rate concessions, something not seen for some time.
Further good news includes a slight increase in first-time buyers, and a notable increase in holiday home and investment buying. This, together with the indications that prices are finally increasing is further good news for sellers. With more buyer activity, stock shortages in many areas translate to further opportunities if you are looking to sell right now.
Samuel Seeff
Chairman, Seeff Property Group
