Rawson predicts an interest rate cut soon
Oct 28th, 2008 | 3 Comments »Property News and Trends:
Tony Clarke, MD of the Rawson Property Groups, predicts a 2.5% cut in interest rates by mid 2009, starting this December.
In September, Rawson recorded their best sales figures for the past 11 months. This Tony Clarke, MD of the Rawson Property Group, believes indicates that the South African Market is on the path to recovery.
Clarke points out that the SARB’s (SA Reserve Bank) decision to hold rates at their current level, a drop in inflation and the oil price, could mean that an interest rate cut is on the horizon.
In fact, he expects rates to drop by much as 2.5% in 2009 to 13%, with the first rate cut as soon as December 2008.
For homeowners with a bond of R1mil, a drop of 0.5% in the prime lending rate would equal a monthly saving of about R400. And if rates drop from 15.5% to 13% you would save about R1800 per month.
The local property market remains tough though, with 88% of homes selling below their asking prices, and homes taking about 5 months to sell – on average.
But Clarke expects the South African property market to have the “ride of a lifetime” in 2009.
[via the Independence Blog]
Rawson
October 29th, 2008 at 11:29 am
Sorry – not a price have we got a rate cut on the cards nor a recovery in the residential property market….
I think he has made these comments a year too early…
70000 people are behind on their mortgage payments and 7000 cars per month are being repossesed.
We’ve also got a slippery currency which is expected to weaken further by the end of the year and the only ammo that the SARB has in its arsenal is an interest rate INCREASE…
Think its maybe a little bit of wishful thinking
November 12th, 2008 at 7:02 pm
I agree with Rawson. All the signs are there fir interest rates to come down. I hope for Dec08, but if not if will come down dramaticly in 2009. It will come down more than 2.5%, I think, because look at what is happening all over the world. Every country is slashing rates. The UK with 1.5% in one go from 4.5% to 3% and they are talking about 1% soon. SA is not an island and we have always followed the rest of the world in interest rates. We are a little late fir every party, that all. We will have rates of 10% or less by the end of next year. I hope.