RESILIENT LOCAL HOUSING PRICES DEFY HIGH INTEREST RATES

by Taryn Davies Stevens • 2 MIN • 280 Words

Local housing prices remain stable despite the challenge of elevated interest rates. According to the July Residential Property Indices Report by Lightstone, house prices have actually strengthened slightly, showing a 4.05% increase.

Rather than causing a standstill in the housing market, the high interest rates have shifted the activity toward cash transactions. With the cost of home financing on the rise, many buyers are opting to use cash for their purchases. Some are even choosing to sell their current homes and rent while they wait for the perfect property to become available. When the opportunity arises, they make cash offers and negotiate for the best price. Currently, around half of all buyers are using cash, while the other half rely on bank financing.

Buyers have adapted to the current market conditions, and they appear more willing to invest in property compared to the early stages of the interest rate hikes. There has been a noticeable surge in market activity following the winter season, and overall, there is greater confidence in the property market, with interest rates having stabilized after consecutive increases. Buyers in the market now tend to be more financially prepared, whether they are using financing or cash for their home purchases.

While high interest rates have led to reduced activity in the housing market, there is still demand for homes in desirable areas priced at fair market values.

If you're considering selling your property or encountering difficulties in the selling process, contact INTRO REAL ESTATE today. With over four decades as the market leader in the East of Johannesburg, you can rest assured that your asset will be well taken care of.

INTRO REAL ESTATE, it’s right choice.

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