Comment on interest rate announcement
30 January 2012
More of the same as we enter a New Year, says Adrian Goslett, CEO of RE/MAX of Southern Africa. As expected Reserve Bank Governor Gill Marcus, announced at the first Monetary Policy Committee meeting of 2012, that the prime interest rate will remain untouched at 9%. Following on from the steady rates during 2011, the news will be warmly welcomed by South African consumers as the economy continues to recover at a slow but seemly solid pace.? RE/MAX predicts that the rate will stay relatively steady over the next 12 months. While the trading conditions during the past four years have been anything but boring, it seems that the South African property market has adjusted back to some sense of regularity.? Aside from posting its best winter sales results in the history of the company during 2011, RE/MAX of Southern Africa?s overall sales figures for 2011 were up by 30% on the previous year. Although deposits of between 10% and 30% will still be required by financial institutions to secure a property, they have relaxed their lending criteria slightly and are approving as many as 50% of the home loan applications they receive. Along with the steady prime interest rate, this will continue to further stimulate the economy and more pointedly the property sector during 2012.