Sandton Real Estate

For the love of property

Positive Feeling for Property 2011

The residential property market has several factors in its favour going into 2011:

  1. exceptionally low interest rates
  2. slower-than-expected consumer price inflation
  3. decreasing levels of household debt

Where you aware that the interest rate is the lowest it has been in 36 years?

With decreasing household debt couples can now consider purchasing a home of their own. Banks will be more favourable to granting a higher percentage bond. Low interest rates are already helping the property market by putting extra money into household piggybanks and boosting the demand for credit such as home loans.

Economists are predicting another rate cut early in the year, which can only be good news to consumers.

Standard Bank has estimated that inflation will average 4.6% y/y in 2011, so even if house prices only grow at 7% – which we think is what we can reasonably expect – these will still beat inflation in most cases.

Experts predict there will be a noticeable growth in the “small house” segment sales. All in All there is an atmosphere of positivity for the property market. Although property won’t boom, there will definitely be growth.  Purchase Price will still remain a strong factor. The general feeling is that buyers. Similarly, while access to shops, schools and major transport routes is still important, these are also secondary considerations to price and running costs in almost every case.

There is a general feeling of positivity and growth for the property market for 2011, although there consensus that we cannot at this stage expect a property boom.

This article has been reprinted with the kind permission of Masilo Freimond Inc.
Tel : 011 958 0488
Fax : 086 610 0276
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January 12, 2011 Posted by | Economy & Markets, Sandton Local News, The Real Estate Market | Leave a comment