Why now is the perfect time to buy a property in South Africa

With fewer buyers and substantial stock on the market, Seeff encourages individuals to make a move and buy a property in South Africa 

It would be premature to call this a “buyer’s market”, but Samuel Seeff, chairman of the Seeff Property Group, observes that many areas are indeed favouring buyers. While the market is weak and many buyers must adjust their budgets to accommodate higher interest rates, you can take advantage of stagnant prices and negotiate more favourable deals when buying a property.

Seeff also notes that transactions are taking longer to finalise, and there has been a notable increase in available properties in certain areas, particularly Gauteng and the inland regions.

As stock volumes grow and properties remain on the market for longer periods, sellers are competing for buyers and carefully considering their asking prices. 

Positive Trends That Reveal Why You Should Buy A Property  

The great news for buyers is that mortgage lending conditions remain highly favourable, reminiscent of the time before the 2007/8 financial crisis when the National Credit Act was implemented. While the prime rate stands at 11.75% (higher than in previous years), it still falls below the average range of 15%-16%. The result is appealing lending terms for buyers.

• Additionally, buyers can still secure mortgages with higher loan-to-value ratios - first-time buyers can even obtain 100% bonds.
  
  
• Buyers will also be pleased to hear that property prices have seen minimal growth. In fact, over the past 18 months, house price growth has declined consistently. The FNB House Price Index reveals that annual growth in April averaged a modest 2.7%, compared to the 4% average observed in April 2022.
  
  With the exception of the greater Cape Town, Seeff notes that price growth has been subdued for well over a decade. FNB last reported double-digit house price growth in 2007!
  
  
• The number of individuals selling for financial reasons (representing approximately 17% of all sales) has increased. This gives buyers greater power to negotiate a favourable price. Consider, too, that sellers are under pressure to ensure their properties are in impeccable condition before selling, as they’re now dealing with a smaller pool of buyers and an over-supply of properties in the market. 

If you want to stay informed about the shifting real estate market and seize its opportunities, dive deeper into Seeff's insightful Home Story blog, where we share property news, interior design tips, and advice on buying or selling a home.

Are you ready to make a move in this buyer-friendly market? Contact us today to speak with our experienced professionals, who can guide you through the conveyancing process and help you buy a property that suits your needs and budget.