A golden opportunity: Buy a house while price growth slows

Hope is on the horizon if you want to buy a house. The improved inflation and currency outlook indicate that the interest rate will likely decline in the coming year. 

Seeff encourages aspiring homeowners and investors to leap into the housing market and seize property investment opportunities. Despite the current prime rate of 11.75% (above what we’ve witnessed in previous years), it nevertheless represents a sweet spot as it’s below the historical average of between 15% and 16%.

There is a great supply of properties currently on the market. FNB reports that reasons for selling stem from financial reasons at 17%, to semigration from upcountry areas for better living conditions at around 14%, and emigration at 7%. 

Three Reasons Why It’s A Great Time To Buy A House

The first reason is that the home loans market is favourable for buyers. Approval rates are at their highest since 2007, and deposit requirements are still low. First-time buyers can obtain 100% of the mortgage loans. Some buyers may qualify for rate concessions.

• Flat house prices. Buying a house during a market downturn is generally more profitable since prices tend to be more stable.
  
  
• FNB says that housing prices are not likely to go up this year and are currently down between 2.7% and 4%. Areas receiving the highest demand and price growth include Cape Town, other Western Cape regions, Johannesburg, and Pretoria.
  
  On the other hand, Gauteng and KwaZulu-Natal areas are currently receiving the least price growth nationally.
  
  
• Sellers are open to negotiating. As the average house price appreciation slows, sellers become more open to negotiating property prices. Due to this, buyers can find an affordable deal in the market and buy a house that suits their budget. 

By building trusted relationships over our 59+ years of business, Seeff is one of the leading property specialists in Southern Africa today. Our team offer the perfect balance of astute business savvy and a real understanding of our customers' needs.

To ensure a smooth and successful experience, contact your local Property Practitioner. Let us help you buy a house.