Why homebuyers should pay attention to the housing market in 2022
Category General Information
During this time of year, many financially stable young professionals who rent properties have decided to settle down and invest in their property.
It may be a significant move for you, but one that will help you generate wealth and long-term security, says Samuel Seeff, chairman of the Seeff Property Group.
Will 2022 Be a Good Year to Buy a House?
Despite SARB's decision to increase the prime interest rate to 8.25%, Mfundo Mabaso, from FNB Home Finance, stated that buying a home has become cheaper than renting over the last two years.
Why Will 2022 Be a Good Year to Buy a House?
- We expect the interest rate to stay substantially below pre-pandemic levels in 2022, with residential property remaining the most significant buyer's market.
- Bank loans remain at their highest level in over ten years, contributing to these favourable conditions. First-time buyers still may obtain house loans with higher loan-to-value ratios - often as much as 100% - and, in some cases, with additional cost allowances.
- A steady flow of stock, keeping prices linked to inflation despite the recent spike in driving power and sales throughout the major metropolitan areas. Therefore, buyers can still take advantage of low-cost inventory on the market.
Samuel Seeff believes that the SARB's widely predicted decision to grow the repo rate by 25 basis points to 4% (prime lending rate currently sits at 7.5%) will have little impact on the property market.
Over the last year, the property market has exceeded expectations. This outcome resulted in some of the best sales in over three years. During this time, Seeff has generated a commendable R1.5 billion in gross sales each month on average - the most in more than 57 years, 33.3% higher than 2020, and 18% higher than our previous record year.
We expect the housing market to have another solid year, and buyers will benefit in particular. The momentum will continue to create chances for sellers. We hope for robust activity in the R3 million to R8 million price range, aside from sustained trading in the sub-R1.5 million price band.
As Seeff says, there hasn't been a better time to buy a house in over ten years; it is a no-brainer for those with financial resources and determination to become homeowners.
Author: Seeff
