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Predictions for the 2021 real estate market
As we near the end of an unprecedented year, Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett, looks ahead and predicts yet another year of mixed results as we continue to navigate through the aftereffects of the national lockdown and continue to battle against the pandemic.
Low interest rates mean high sales volumes
"Interest rates are likely to remain low as we head into 2021. There is the possibility that there will be a slight increase of around 0.5 points for 2021, but this should not have a great impact on the property market.
As things stand, the low interest rates (in conjunction with other factors) have created a housing market boom, particularly within the first-time buyers' market.
Our reported sales figures year-to-date for October is up by 3% from last year. This is following three months during hard lockdown (from April to June) where our sales figures dropped by as much as 62% YoY.
Our prediction is that the Southern Africa property market will continue to see these high sales volumes in 2021 for as long as interest rates remain favourable and homeowners continue to adjust their lifestyles to suit the post-lockdown world," says Goslett.
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