“ Prepare for the worst and to expect the best advises Goslett ”
Although buyer activity will take a knock following this latest hike , I am optimistic that demand for real estate will remain strong . Interest rates are still roughly 1 % lower than pre-pandemic levels and the housing market was still active when prime was at around 10 % pre-COVID .
this means leaving room in the budget for future interest rate hikes . For sellers and landlords , this means setting a fair asking price and rental amount so that buyers and tenants are able to afford the purchase and the rent . For agents , this means building up savings to get you through quiet months with no sales .
It is always better to be well prepared and not need it , than to be unprepared when disaster strikes .
Even after this latest interest rate hike , it is still more affordable to take out a home loan now than it was back in 2020 , which leads me to believe that the property market will remain active despite the increasing interest rates .
It is difficult to say what lies ahead for the local housing market . For buyers and tenants ,
Adrian Goslett Regional Director and CEO RE / MAX
SA Real Estate Investor Magazine AUGUST 2022 179