The Monetary Policy Committee (MPC) has announced that interest rates will remain unchanged, with the repo rate at 6.75% and the prime lending rate at 10.25%. While the decision provides a degree of stability for the local housing market, many consumers and property professionals were hoping for a rate cut to offer greater financial relief and stimulate increased market activity as the year kickstarts.
Commenting on the announcement, Adrian Goslett, CEO and Regional Director of REMAX Southern Africa, says that while the outcome may be welcomed from a certainty perspective, it will still be disappointing for homeowners and potential buyers who are under ongoing financial strain.
“Although holding rates steady does offer some predictability for the market, the reality is that many South Africans are still feeling the pressure of a higher cost of living and strained household budgets. A rate cut would have helped ease the burden on consumers and encouraged stronger buyer confidence, particularly among first-time buyers trying to enter the market,” Goslett explains.
The South African Reserve Bank’s (SARB) decision reflects a continued cautious approach, as inflation risks remain a concern and international economic conditions stay uncertain. Despite signs of gradual improvement in some economic indicators, the SARB appears focused on maintaining stability until conditions are clearly supportive of a sustained easing cycle.
“With interest rates remaining unchanged, the property market will likely stay stable for the time being. This could still be a positive window for buyers, especially while property prices remain relatively competitive in most parts of the country apart from the Western Cape, and lending appetite continues for better-qualified borrowers,” he adds.
Goslett concludes by encouraging consumers to keep a close eye on market movements in the months ahead. “Those who are financially prepared may find opportunities in the current market. With the right guidance and a clear understanding of affordability, buyers can still make smart property decisions despite interest rates remaining at the current level.”
For more real estate advice or to get in touch with your nearest REMAX Office, visit www.remax.co.za.
