A buyers market emerges
A Buyers Market Emerges
If you're in the market for a new home, there has never been a better time to explore your options.
As the property market steps out of Level 4 Lockdown and real estate agents start actively operating again, we find ourselves in the best buyer's market in over 30 years. The most recent interest rate cut has seen the rate drop to 7.25%, and the total repo rate drop by 3.75%. This has created an opportunity for buyers to reduced borrowing costs and much improved affordability.
Although it may be tough to predict the property market for the foreseeable future, we expect the low to mid market range of properties below R1.5m is where we will see the majority of interest and activity. In many areas it has now become more affordable to buy, than to rent and investors are seeing this as an opportunity to capatalise on the opportunity for great returns.
It is also expected that the rental market will see some bouyancy, based primarily on the current economic turmoil where South Africans may prefer to rent as a more flexible solution, rather than home ownership. This may be the case until financial stability returns during the course of 2021/22.