House price growth has been dampened for some time now owing to broader economic factors. Once the interest rate cutting cycle begins, it is possible that we might experience a quick turnaround within the local housing market.
“Being prepared for this swing can help buyers and sellers snatch up the opportunities before it is too late,” says Adrian Goslett, the regional director and CEO of RE/MAX of Southern Africa.
For those unsure how to prepare for possible changing market conditions, RE/MAX of Southern Africa shares some advice for buyers and sellers.
Get your finances together
Once interest rates come down, the market is likely to become more competitive slowly over time for buyers. It is advisable to get in early before house prices begin to climb. Save up for the upfront costs like transfer duty and bond registration fees. Get a pre-approval certificate to prove you are a serious buyer.
For sellers, once market activity begins to tick up, you want to be ready to sell. This means having enough cash saved to cover the related expenses (compliance inspections and certificates, rates clearance costs, and more).
Partner with an estate agent
A working relationship with a real estate agent is the best way to stay informed about as and when market conditions change. Before the conditions change, take the time to set up appointments with a few agents to find somebody with whom you connect. It’s a real estate agent’s job to know what’s happening in the real estate market, so lean on them as a valuable source of information.
Manage debts
When interest rates come down, try to keep your repayments the same as before to pay off your debts faster and reduce the interest charges. If you can afford to pay off any debts before the interest rates come down, this will also help you qualify for a better rate on your home loan. Try to pay off the debts with the highest interest rate charges first- typically things like car or personal loans.
While the property market remains hopeful that conditions will soon become more favourable overall, Goslett mentions that even in the current conditions, the property market is by no means inactive, especially for those who work with a reputable brand like RE/MAX.
“July 2024 has been our biggest month of sales registrations in the last 12 months. The RE/MAX SA network sold over R2.7b worth of property.
“While some regions are performing better than others, the need to buy and sell property exists in every market. Partner with a property practitioner to find the opportunities in your area,” he concludes.
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