Yes, I do believe that the latest interest rate cut will affect the market positively.
It certainly encourages and enables potential purchasers to now purchase properties that were previously unaffordable.

We have seen an increase in the number of sales taking place or more positivity
depending which way you look at it since the Reserve Bank announced that they
were going to meet on a monthly basis to review interest rates.

Some of the sales concluded by our Firzt Realtors during the week were:

Glenhazel - R4 242 000, Parkview - R3 750 000, Abbotsford - R3 150 000,
Parkhurst - R2 500 000, Linden - R1 830 000, Killarney - R1 270 000 and Richmond - R1 100 000.

What we have found up to now, is that clients are being more thorough in their budgeting
for property purchases and purchasing homes within their affordability range. This is resulting
in people not over-extending themselves which in turn, will have the desired effect of curbing the inflation rate.

We must remember that there is an acute
shortage of housing in South Africa and, based on the supply vs demand situation,
all indications are that we will see a steady growth in the market again.

Denese Zaslansky
askdenese@firzt.co.za - 011 731 0300