Distinct change in interest rates granted by banks in South Africa…
Property news from our CEO
Happy Spring! With warmer weather now upon us, it’s not only the atmosphere that’s heating up but the property market as well. The recent government decision to drop to Covid-19 alert level 1 will also translate into greater interest from those looking to buy a property or sell their existing property.
The new season and the lessening of Covid-19 restrictions are a breath of fresh air after the tough six months that all South Africans have had to endure.
However, these positive developments have been somewhat stymied by the South African Reserve Bank’s (SARB) puzzling recent decision to keep interest rates unchanged at 3.5%. An interest rate cut would have provided our fragile economy with a much-needed boost, as months of lockdown due to the Covid-19 pandemic have exacerbated the issues besetting the country’s economy.
At the same time, the local property market is being held back by an overly cautious approach by the major banks. This assertion is backed by Leadhome’s data, which indicates there has been a clear shift in the interest rates granted by banks on home loans pre- and post-lockdown. In fact, 54% of home loans granted below the prime interest rate in the first quarter of 2020, and 27% of home loans granted with interest rates below prime after 1 June. This means that almost three-quarters of homebuyers in this period were paying prime or above.
Nevertheless, we are still confident that the property market will still prove to be an attractive option for both buyers and sellers within the coming months.
For more on my thoughts on this matter, please click on the story below.
Business Tech Findings: click here
Moving on to other matters, I would like to take this opportunity to wish everyone a happy Heritage Day for September 24. This public holiday is always an important occasion for our country as we celebrate the diversity of a nation that comprises people of varied origins, ethnicities and religions. This diversity is our strength, as it helps shape our values and understanding of the world and gives us unity in forging our uniquely South African identity.
I would also like to remind you that Leadhome remains committed to offering you an outstanding service backed by leading technology and an honest, friendly, adaptable and hands-on approach. Our agents and staff truly are Agents of Change.
Here’s hoping the last quarter of 2020 is happy, healthy and productive!
Marcél du Toit
Chief Executive Officer
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