High Street Auctions Director Greg Dart says it was no surprise that the MPC left the repo rate unchanged on 18 July, 2024, but bullish post-election investor sentiment means South Africa’s mid-term economic outlook is positive, to say the least.
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Dart adds: “There was very little chance of the MPC moving to lower the repo rate without the US central bank indicating a similar change, and economists are predicting that will only come in September.
“That said, if Reuters’ panel of economists is on the money with their forecasts, we could see not one, but two cuts before the end of the year. Both are likely to be conservative – no more than 25 basis points each – but this will drop the rate to 7.75% and offer consumers substantial relief.”
Dart says there’s no doubt, though, that the property market is already starting to boom after the national election.
Eager to snap up opportunities
He goes on to say: “Investors who quietly disappeared from the scene in Q1, are suddenly back in play and eager to snap up those opportunities on the market now, before prices really start rising in response to buyer demand.
“With rate cuts in the offing this year and a far more positive economic outlook for the country, there really won’t be a better time than now, to buy.”
