Opportunities for buyers and sellers as market rebounds on pent-up demand
Category Market Update
While the economy remains a precarious shadow over the property market, we are delighted that there has been a notable uptick in buyer activity over the last few weeks.
Buyers have looked to take advantage of the interest rate and good selection of stock. This has created an excellent window of opportunity for sellers to also take advantage of the favourable buying conditions.
For many areas across the Southern Suburbs and Constantiaberg it has been the busiest month this year. In many respects, activity has been on par with the same period last year.
Homebuyers who had been eagerly waiting to take advantage of the favourable conditions have welcomed the opportunity to physically view properties under the Level 3 Provisions and have wasted no time to get their offers in.
Some good news too with inflation down to 2.1% for May, a further reduction from the 3% recorded in April and the now at the lowest level in 16 years. The overall inflation outlook for the year is now at around 2.43%.
After initially declining against the US Dollar, the Rand is also strengthening beyond expectation. This, together with the low inflation means that the South African Reserve Bank is likely to maintain the low interest rate environment this year, further good news for buyers and the market.
That said, we remain mindful of the economic challenges that will characterise this year. Given that the Reserve Bank expects the GDP to decline by 7% for the year, there will no doubt be pressure on the property market and asking prices will remain in the spotlight. That said, where there is demand, sellers should take the opportunity to negotiate.
An important aspect, especially in the current market, is to know that each area differs in terms of outlook and how the market is slanted. While news stories and reports provide insight into general trends, it is best to consult with a local area expert about the particular area.
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Author: Gina Meintjes
