Some more good news as the Monetary Policy Committee (MPC) announced today that interest rates will drop by 0.25%, bringing the repo rate to 7.75% and the prime lending rate to 11.25%.
Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett, says that this cut was well timed and is grateful for the more favourable market conditions that are likely to follow.
“The effect of any interest rate cut is usually felt several months later once the market has adjusted to the lower rates. Coming off the back of an interest rate cut in September, this further cut should line us up for more favourable property market conditions in the months to follow,” says Goslett.
Apart from the Western Cape which has been largely unaffected by the high interest rates, the rest of the country has been experiencing slow property market conditions for some time now. “These two cuts should go a long way towards stimulating activity within the property market again,” Goslett notes.
He also remains hopeful that market conditions will remain favourable for the time being. “There have been positive offshoots since the formation of the GNU and inflation seems to be under control for the time being – both of these factors bode well for how the property market will perform within the near future,” says Goslett.
His advice for buyers, sellers, tenants and landlords is to lean on the advice of their trusted real estate professional now more so than ever. “Timely advice from a real estate practitioner is vital when property market conditions are changing – which I predict it will be in the months to come. Gaining a real estate agent’s insights early will help clients navigate whatever conditions may come their way,” he concludes.
