|
|
Select a year
News Search
STABLE INTEREST RATE MEANS STEADY GROWTHYesterday's announcement of no change in the interest rate is in line with most economic predictions for a slow yet steady improvement in the economy. Now at 10%, the interest rate is at its historically lowest level since 1981. Affordability, debt-to-income ratios and consumer's appetite for credit are all continuing to play a major role in the residential real estate sector. Statistics released by the South African Reserve Bank showed that the year-on-year growth in financial institution's total outstanding mortgage balances, for both commercial and residential mortgages, decreased to 3,6% in March 2010 from a level of 3,9% in February. With a stable interest rate, property prices are expected to follow an upward trend of slow and steady growth. The property market generally lags behind the economy by 10 to 12 months, and therefore a minimal growth of around 5% is expected for real estate in 2010. We anticipate that the interest rate will remain at its current level until early next year.
|
||||||||||||||||||||||||||||||