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Property market in 2024: Buy now or wait?

Interest rates and the state of the market are factors homebuyers should take into account when deciding whether to purchase a home in 2024.

Property Market South Africa

Article summary

  • Experts predict interest rate cuts in 2024, making it a good time to apply for home loans.
  • Competition between banks makes home loan approval more likely.
  • Government subsidies such as First Home Finance make homeownership viable for first-time homebuyers with low income.

With loadshedding and rising fuel prices, many South Africans may be concerned about the state of the property market.

Here’s why you shouldn’t delay your dream of securing a home loan for a brand-new home.

The clincher: Potential interest rate cuts

The past couple of years have seen a succession of interest rate hikes as the South African Reserve Bank sought to combat inflation.

However, that trend may be coming to an end. September 2023 saw the SARB elect to keep interest rates the same.

In fact, experts predict interest rate cuts as soon as May 2024.

Despite rising inflation, PwC and Nedbank are predicting rate cuts in the future as the South African Reserve Bank looks to stimulate the market. This is sure to bring about an increase in home loan applications.

What this means for homebuyers

If predictions prove accurate, 2024 may be the year to apply for home loans, particularly from May 2024 onward. Take advantage of the interest rates while you can.

It’s a buyer’s market

Another reason to invest now is that the property market remains a buyer’s market.

A buyer’s market is when supply outstrips demand. This is currently the case, meaning lower prices for buyers.

A wider range of property types

The work-from-home lifestyle that has emerged in the wake of COVID means a new focus by developers on what’s been termed “COVID babies”. These are developments that provide a live-work-play environment, meaning residents have access to a wide range of facilities including gyms, workspaces, and coffee shops.

Competition between banks

Competition between banks is strong as they strive to secure customers in a tough economy.

Banks are more likely to grant home loans, even to buyers with low credit scores.

Homebuyers also stand a better chance of securing special packages such as the 100% home loan, which removes the need for a deposit (a major barrier for many first-time buyers).

Homebuyer’s subsidies

The government is looking to encourage homeownership with subsidies such as First Home Finance (formerly known as FLISP). This is a subsidy aimed at first-time homebuyers with low income (ranging from R3 501 to R22 000).

You can apply online for First Home Finance with ooba Home Loans.

Gain an advantage in the property market by getting prequalified

Prequalification assesses your credit record and financial situation, providing you with a solid estimation of the home loan you can afford.

This will serve as proof to the bank that you can afford the home loan you’re applying for. It gives you the best chance of home loan approval in the current market.

You can get prequalified by contacting an expert at ooba Home Loans or by using our free, online prequalification tool, the Bond Indicator.

Get prequalified for a home loan today

DIY with our online prequalification tool, or speak to an expert.

GET PREQUALIFIED

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Ooba home loans services are simply the best. My Consultant Bianca Dancer was so hands on and helpful from the get go. She guided me through the entire process and put me at ease being a first time buyer. I highly recommend their services.

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Jay Govender and Maleshini Reddy from OOBA provided outstanding assistance and guidance in securing our home loan. Response times were excellent and they were professional and friendly.

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Estelle Vorster was really helpful in securing the best deal for my home loan, she not only negotiated a lower interest rate she went as far as securing 50% discount on the transfer costs.

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