Cut Positive But Not Enough

The information in this article is courtesy of iAfrica (Property hails rate cut – 30 April 2009).

A step in the right direction. This is how chief executive of Pam Golding Property, Andrew Golding describes the recent 100-basis point rate cut. He added that there are signs that a positive turn in the market is nearer rather than further.

Golding recons that under normal circumstances the 3,5% rate cut seen over the coarse of this year would have positively impacted property sales but due to the extra ordinary times we are currently experiencing, the interest rate reductions has had little impact on house sales.

He added that the rate cut has to some degree eased the burden on consumers but that the liquidity crunch that banks are experiencing should be eased to make a real difference in the property market. Golding does not see this happening in the near future.

Golding also believes that the stabilisation of sales volumes and further rate cuts would enable consumers to meet the banks’ strict lending criteria and improve affordability. He added that they should anticipate a wait-and-see attitude as the country has just elected a new president – and with any change there is a sense of hope.

Buy Cape Town property