Don’t put the brakes on your home search

Consumers keen to become homeowners should not let this week’s decision by the Reserve Bank to hold interest rates steady stall their search for a suitable property.

“The decision, which means the home loan base rate stays at 10,5% for now, comes at a time when residential property demand is gaining momentum and prices are climbing,” says Stephen Whitcombe, MD of leading Johannesburg property company FIRZT Realty.

“And while some prospective buyers may feel hesitant to commit in the face of higher borrowing costs, a delay now could cost them much more in the long run.”

StatsSA’s latest Residential Property Price Indicator shows that annual national residential property price inflation was already running at 5,9% in April this year, with sectional title properties recording growth of 4,8% and freehold properties climbing even faster at 6,4%.

“Against this backdrop, holding off on a purchase in the hope that rates may be cut further later this year will most likely only result in buyers having to pay more for the same property – and qualify for a bigger bond.

“So our strong advice to prospective buyers is not to hit pause on their property search. The reality is that the housing market is getting stronger, especially in Johannesburg, which is the financial heart of SA. Demand here is robust, stock is moving and prices are rising steadily.

“Waiting for the next interest rate cut might feel like the safe option, but in practice it often means that by the time buyers return to the market, homes cost more and affordability is no better,” he says.

Whitcombe suggests that prospective buyers should focus on the fundamentals rather than trying to time the market. “If you find the right property that fits your budget and lifestyle, the best strategy is to act decisively. You can always accelerate your bond repayments later when interest rates ease. What you can’t do is go back and buy at yesterday’s prices.”

With economists still divided on whether further cuts will materialise before year-end, today’s decision underscores the uncertainty of the rate path ahead. But what remains clear is that South Africa’s property market continues to see solid growth. For serious buyers, the message is to keep searching, stay prequalified, and be ready to move when the right opportunity presents itself.