National
No change in repo rate good for real estate─── 06:55 Fri, 22 Sep 2017
Johannesburg - Mike Greeff, CEO of Greeff Christies International Real Estate, has commented on yesterday’s decision by the Reserve Bank to leave the repo rate unchanged – saying it comes as a relief to the real estate industry.
"We’re seeing a stock shortage, as well as a slight leveling off of house selling price growth, but demand is still high in the Western Cape and unlikely to drop, which means property values will continue to grow.
A drop in the repo rate would have been very welcome, but maintaining the status quo is also positive, as it sends a strong message of stability to the market, and this is very important in the current economic climate.
Anyone planning to buy a home and use a bond facility should be aware, however, that banks continue to be rigorous in their research into loan qualification criteria, and applicants without sufficient income are going to be turned down.
Selling prices may be up, but sensible lending is still very much in place.”
Statement supplied
