Praise given after MPC’s repo rate decision

When looking to buy or sell property in Johannesburg, the interest rate plays a significant role in affordability in the market, and if you have been following the news updates on the Private Property website, then you will know that there was some positive news to start the new year.

For many 2018 proved to be a year that will long live in the memory considering all of the tough moments endured. However, the Reserve Bank Monetary Policy Committee decided that there would not be a further increase to the repo rate, with it staying at 6.75% (base home loan rate at 10.25%).

Private Property recently caught up with Seeff Property Group to discuss the matter and they praised the Reserve Bank Monetary Policy Committee for the decision, and believed that 2019 would be the ‘year of great expectation’.

Diving into their reasons why they felt this here, they pointed to the fact that the rand had been more stable in recent months, while petrol prices were also falling and Moody’s had not changed the credit rating to junk status. Inflation and the sluggish economy were still a cause for concern, but they said that if there are no more sudden surprises, people can expect some positive changes as we move further into 2019.

They then went on to look at the sector of the market that is still seeing a lot of activity. Properties that fall into the price range of R1m and R3m, area specific, are still attracting interest and they believe that business will continue as per usual, with properties being sold within a decent time frame.

However, with conditions still tough, they advise that sellers link up with local experts so that they have a full understanding of current trends in the market and can have realistic expectations.