The Monetary Policy Committees decision to hold interest rates at their current levels will be welcomed by the property marketing fraternity, says Tony Clarke, MD of Rawson Properties, a group which now has just over 150 residential marketing franchises countrywide and is diversifying into development and, recently, the franchising of auction, letting and commercial operations.
'Although confidence in residential property is taking time to build up '“ and has been hard hit by the difficulties experienced in getting in bond finance '“ the consistently lower rates (the lowest in ±30 years) have slowly begun to create a more positive sentiment among buyers,' said Clarke. 'That being the case, a rise in the rates right now would have been a setback - and we can be grateful that this has not taken place'
In another statement, made last week, Clarke said he does not foresee interest rates rising by more than 1,5% in the next 18 months, which again augurs well for property sales prices.
Looking at the western worlds economies in general (because 'their performance does affect us in SA') Clarke said the prevailing tendency is always to wait, watch and then react.
'I make no claim to being an economist,' he said, 'but I agree with those who have said that positive job creation and more proactive action is now needed to stimulate growth '“ and I believe this could go hand in hand with budget austerity cuts'
'The message in the property sector remains the same: 'Dont leave buying too late. Even if the western world has a second recession, I think that SA property will be on a gradual recovery path from 2012 onwards)'
For further information contact Tony Clarke on 082 789 2752 or email tony@rawsonproperties.com.
