Home Prices May Fall Lower? Wishful Thinking…
Property prices in Gauteng have not appreciated much. In fact, many have depreciated due to market conditions.
Some buyers think that because interest rates have gone up, it means prices will tumble. They are waiting for prices to drop further before deciding to buy (getting into the market).
It’s important to understand what caused home prices to decline.
Some house prices have been pretty static over the last few years. This is due to the economy and South Africa’s unique political situation. Market sentiment also played a part.
There have also been more sellers than there were buyers. This occurred especially during 2021 when interest rates in SA were the lowest they’ve been in 50 years.
Today inflation has escalated. The cost of labour and raw materials has also jumped up.
It is our opinion that property prices will remain resilient.
Savvy investors are quietly buying, expecting interest rates to decrease. They are hoping that the property market will bounce back. So let’s see what happens in the New Year.
