The property market remains dynamic, presenting numerous opportunities despite the Monetary Policy Committee’s decision in July to postpone any rate cuts until later in the year. Experts believe that the onset of a rate-cutting cycle will create a ripple effect in the property market, easing financial pressures on current homeowners, potentially reducing crisis sales, boosting buyer confidence, and making home loans more accessible to new buyers.
Consumer confidence following the favourable election outcome has improved significantly. Along with a stabilising market, this has contributed to a resurgence in property market activity, which is expected to continue growing.
However, high demand for homeownership is tempered by factors such as a stagnant economy, political uncertainty, and fears of future rate hikes, which are deterring aspiring homeowners, particularly first-time buyers and those in the lower to middle price brackets. Additionally, global economic conditions, including shifts in inflation, interest rates, and foreign investment flows, have impacted the local property market. The interplay between these global and local factors creates both challenges and opportunities for buyers and investors, underscoring the need to stay informed and adaptable.
The promise of potential interest rate cuts and economic stabilisation could be the tipping point for many buyers ready to enter the homeownership market. To prepare for possible changes, consider the following:
Get financially ready now. With rate cuts on the horizon, competition will rise, and so will prices. Buyers, save for upfront costs and secure pre-approval. Sellers, prepare for increased activity and ensure you have funds for related expenses.
Keep repayments steady when rates drop to clear debts faster and save on interest. If possible, pay off high-interest debts like car or personal loans now to improve your chances of securing a better home loan rate.
Partner with a reputable property practitioner. With a passion for people and property, Etchells & Young Property Brokers has spent 20 years building strong relationships and a solid reputation in rentals, sales, rental management, and development sales in Johannesburg North and North West. Our specialised team keep buyers and sellers informed and ahead of market shifts, offering personalised insights and step-by-step guidance that simplify navigating this dynamic market.
