The Monetary Policy Committee (MPC) has kept the repo rate at 7.5%, with the prime lending rate holding steady at 11% disappointing debt holders who had hoped for relief.
Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa of Southern Africa said the decision was a missed opportunity for the South African Reserve Bank (SARB) to ease financial pressure on consumers.
"While I acknowledge the risk of inflation, expectations, I still think the SARB acted too cautiously," he said. "A rate cut would have provided much-needed relief, especially after key decisions in the Budget Speech. It could have offset some financial strain and created greater opportunities for economic growth, something our country desperately needs."
Goslett said that affordability remains a top concern for home buyers in the wake of the Budget Speech and the MPC's decision. He advised real estate agents to support clients by connecting them with bond originators or financial advisors to help them access affordability.
Looking ahead, he urged buyers and sellers to stay informed about economic trends that could affect the property market. "Future decisions by SARB will depend on the inflation trends and global economic conditions, both of which pose significant upside risks," he said. "While no rate hikes are forecasted, further cuts seem unlikely."
He advised those already in the market or looking to enter it to work closely with real estate professionals.
Cape Argus