Good news for homeowners in South Africa: [an Extract from an Article by: Bianke Neethling in: DAILY INVESTOR – 8 January 2025]
South African homeowners are expected to save money in 2025, with interest rate cuts, positive economic indicators, real property value growth, and increased bank support spelling good news for buyers and investors alike.
In addition, areas like Gauteng and the Cape are expected to see higher prices and demand this year.
South African homeowners have been through a rough few years, as the Reserve Bank embarked on a hiking cycle in 2021, which saw interest rates rise by 475 basis points.
South Africans went from some of the lowest recorded rates in the country’s history during the Covid-19 pandemic to interest rates at 15-year highs.
This saw homeowners paying significantly more on their home loan repayments every month. Combined with a signficantly higher cost of living, high inflation and slow economic growth, South Africans have been under significant pressure.
However, the tides turned in 2024, as the Reserve Bank’s Monetary Policy Committee (MPC) decided to cut interest rates for the first time in years in September 2024.
The MPC cut rates by 25 basis points at its September meeting, then announced another 25 basis point cut in November.
Experts widely anticipate another 25-point cut at the MPC’s first meeting for 2025, which will take place on Thursday, 30 January.
The Original, Full Article can be viewed here: Link: → https://dailyinvestor.com/property/73114/good-news-for-homeowners-in-south-africa/