Property market remains steady as we approach mid-year
Category Market Update
As we approach the mid-year mark, we are pleased to note that the local property market remains active. This, despite the interest rate hiking cycle which is now firmly in motion as the Reserve Bank looks to normalise the rate and counter the rising inflation.
The news that the GDP expansion of 1,9% in the first quarter, which was also the second successive quarter of growth, has taken the economy back to pre-pandemic levels is most welcome for the economy overall.
That said, the rising inflation to 6.5% in May (from 5.9% in April) will no doubt keep pressure on the Reserve Bank in regard to the interest rate. The economy is also expected to come under some pressure in the second quarter due to higher fuel and food prices among various other factors.
Nonetheless, for the property market, the interest rate, while rising, remains an advantage as it is still below the pre-pandemic level. It continues to serve as an inducement for buyers and a positive factor for the market.
This is further amplified by the fact that the banks are still keen to lend, and often on more favourable terms compared to what we have seen over the last decade according to mortgage originators, ooba. Bank approval rates are also still much faster while deposit requirements are at the lowest level since 2008.
This is a huge positive which continues to support demand in the market. Aside from more availability of finance, price growth remains muted, having slowed to around 2% to 4% on average which shows that buyers continue looking for good value.
This creates opportunities for sellers, but with prices having remained steady, sellers should note that buyers know the market and are not prepared to pay over market value. It is always important to use actual sales as a guideline when setting asking prices rather than looking at what is on the market.
Success in property requires a combination of skills and systems. With over five decades as a market leader Seeff once again showed its strength by successfully navigating the challenges of the Covid pandemic, excelling for our customers and setting new benchmarks.
As we look ahead to the remainder of the year, we remind you that Home is our Story and property my passion. By choosing Seeff, you get the benefit of superior service and systems. Please feel free to contact me at any time whatever your property needs, or if you just want to chat about what your property might sell for in this market.
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Author: Gina Meintjes
