8 May 2014

It has undoubtedly been a buyer's market in South Africa for the past few years with excellent conditions for those wanting to invest in property. There have been a number of opportunities for buyers since the recession, with higher numbers of inventory in the market and property prices in many areas becoming more affordable.

However, with a growing number of sales transactions and some areas experiencing a lack of stock, the proverbial tables seem to be turning to suit sellers. This means that buyers who still want to take advantage of favourable conditions and pricing will need to move relatively quickly.

Here are some reasons why now is a good time to purchase property:

1. Home prices are rising

Conditions are still really good for buyers, but it is not likely to stay like this indefinitely, especially with house prices in many areas already at levels seen during the boom or higher. Although prices are only expected to grow by single digit percentages this year and possibly next, the fact still remains that they are indeed on an upward trend that is not likely to change.

2. Low interest rates

Another reason why now is currently a good time to purchase a property is the fact that interest rates are remarkably low. The last time the interest rate was at its current level was over 30 years ago.

3. Emerging new construction

With stronger demand in the market and inventory stocks depleting among existing homes, opportunity will re-emerge for the construction of more homes and developments, giving buyers further options. Buyers who are reluctant to participate in the current market will still see viable property options in the future, although potentially at a higher cost.

When looking at the property market, it is important that buyers don't just focus on what is happening now, but also look forward to what is likely to happen and the next phase of the market, which will help with the decision making process.

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