Upon entering the property market, there are a number of things that one has to keep in mind when buying or selling property in the Vaal, and one of those is the repo rate. Luckily, if you are a regular visitor to the Private Property website, you will have had up to date access to all the relevant news affecting the market.
In January, they provided an update from industry experts about the decision to keep the repo rate on hold. This is after South Africans had to deal with an increase in 2018, but the Reserve Bank Monetary Policy Committee decided that the rate would now remain at 6.75% (base home loan rate at 10.25%).
When talking to Seeff Property Group, they said that they had high hopes for 2019, even saying that it would be the ‘year of great expectation’. When discussing why they felt this way, Seeff said that with the rand having stabilised slightly, and with the credit rating having not been downgraded, there were reasons to be optimistic. They did hold some concern regarding the sluggish economy and also admitted that inflation was a bit of a concern, but as long as there were no more major shocks, they believe that the latter half of 2019 could yield improvement.
They then went on to look at some sectors of the market, and stated that those who are in the ‘have to buy and have to sell’ part of the market would see business continue as usual. This is mainly talking to those with homes valued between R1m and R3m, as these homes are still being sold within a reasonable time frame, depending on the area that they are in.
