Interest rates has not been as low as it currently is in South Africa in the past 55 years and it is evident from the increase in the number of persons looking for homes. Especially first-time homeowners, who all of a sudden can get into the home owners market a few years ahead of their planned schedule.
News24 reported on Sunday, 12 June 2021 that the annual house price inflation is at 4.6% at the end of April 2021, while the annual inflation rate is 4.56%. The average house price has increased to about R 1 300 000, up by 13.4% over the last year. The seller of that home had an increase in his investment of 13.4% in one year! That is incredible!
The average homeowner is aged 36, according to News 24 and this makes sense as this is usually family time and when people move out of the flat, they have rented for some time.
The flip side of it is, that the stock available in the market is scarce and a well-priced, well maintained property does not stay in the market for very long. Something of owners and buyers to take note of.
This is the time to get into the property market and take advantage of the low interest rate that we currently have. They might not come around for another 55 years.