Comment on the effect of the 0,5% rise in prime interest rate on the property market one month on.
Category Residential Property News
A month on and the 0,5% increase in the prime interest rate has had no effect on the property market, which currently has more buyers looking for property than sellers looking for buyers, said Myles Wakefield CEO Wakefields Real Estate.
Stock levels have dropped considerably to a point where there is a shortage of good properly priced property to sell and to rent. The number of days on the market to sale has dropped considerably and there are many examples of properties selling very quickly. Another good indicator is that the majority of buyers buying their home to live in, with very few investors and speculators in the market.
The most popular price range in the Upper Highway, Berea, Glenwood, Durban North and Umhlanga is from R1 million to R2 million.
Despite this Wakefield says that the interest rate rise is a warning to everyone from government to business and individuals to get their finances in order, stop spending more than they earn and pay down over drafts.
A 9% prime interest is still very close to the historical lowest prime rate and people need to remember that monetary policy is still very accommodating, he said.
Author: Lesley Van Duffelen
