Experts Predict Rise in House Prices

(The information in this article is courtesy of PropertyWire (South African Property Market Might Be Reaching Temporary Bottom – 8 December 2008)

At the moment property sales in South Africa have ground to a halt but the good news is that experts predict that when the market starts to recover, prices could rise to more than 50% in 3 years.

Bargain prices are to be expected over the next 3 months and some suggest that there may not be a better time to buy than now. Chas Everitt International’s spokesperson, Barry Everitt suggests that you make money when you buy property, not when you sell. He added that there is no better time to buy than the present, especially with the forecast of property prices rising by 50 to 60 percent in 3 years.

Rising sales activity since August indicates that there is an increasing demand, which will intensify when interest rates start to fall next year. According to Everitt this will lead to stock levels falling and prices will start to rise. At this point there will be a window of opportunity to negotiate the best deals.

Chas Everitt International’s report also indicates that the best buys are likely to be in the medium-price, medium-size sector of the market where price growth is currently at its lowest ebb.

Everitt concluded by saying that these homes are likely to experience the highest level of demand when the economy turns and many middle-class families who are currently making do in rented accommodation of smaller homes can once again qualify for home loans and start looking for homes of their own or upgrades.

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