Buying a house is a very big decision. On the one hand, it is a very exciting time, where people get to choose where they want to live and make an investment in their future. On the other hand, it is a huge financial commitment that will affect their lives for years to come. As is often the case, such large decisions can be paralysing and lead to inaction. If this resonates with you and you have been waiting for some sort of sign whether you should take the plunge and invest in a new property, consider this is: The property market is currently in favour of buyers, and now is the time you should be looking at houses for sale.
So, what exactly are the conditions that make houses for sale so attractive to buyers right now?
Easier Access to Bonds
Banks have recently been making it easier to obtain bonds by relaxing their lending criteria. Concurrently, they have also been granting more 100% bonds, and in some cases – such as through ABSA – even 105% bonds, making it easier for first-time homebuyers and those who do not have cash available for a deposit to now consider houses for sale. In fact, according to mortgage originator Ooba, the approval rate for 100% bonds have increased by 4% compared to the previous year.
Interest Rate Cuts
2020 started with good news for those who have credit or need to apply for credit, as the interest rate was unexpectedly cut by 0,25%. This makes houses for sale more affordable to those who use a bond (which is the majority of buyers). To put it in perspective, if you have a R1 million bond, you will now pay about R190 less per month on your repayments, according to Carl Coetzee, the CEO of bond originator BetterBond. This could help to improve the cash flow of households, giving them more disposable income.
Favourable House Prices
Political challenges, load shedding, and tighter budgets have put a damper on the property market for a while. This slowdown in market activity has led to houses for sale staying on the market for long. The effect was that the usually robust house price growth has slowed down a bit, favouring the buyer.
If you are looking at owning a property, now is the time to act. Start by looking at the great selection of houses for sale on our website. PropertyCentral is the property listing website that offers you extreme value, extreme simplicity, and extreme results.