Thursday's decision to reduce the repo rate by 25 basis points brings the home loan base rate down to 10.25%‚ says property chief Samuel Seeff‚ welcoming it as a welcome saving for bondholders.
"The lack of action and economic and political will is disappointing in view of the continued business confidence and economic decline‚" he said in a statement.
Seeff said although the property market is in a better position than post-2007/8‚ the market is shifting on the back of the poor political and economic outlook.
Overall‚ he said‚ the market is slower with fewer sales‚ properties are spending longer on the market‚ stock levels are rising and price growth is slower and stalling in most areas outside of the Cape. "On the upside‚ the banks are still keen to lend and today’s rate decision is good news in that regard. The banks are‚ though‚ taking a more conservative approach to approvals and deposit requirements are on the rise.
"Hopefully‚ today’s cut will provide a much needed boost for the market and the economy."
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