Property Market Should Pick up from July - 01-22-09

January  22 - While the general feeling in South Africa is that things are starting to look up for the general economy, property experts believe that the country's property market won't start feeling the change for the next six months at least.

The Managing Director of the Chas Everitt international property group, Barry Everitt said that investors should be able to find some excellent bargains in the next few months before the property market starts to pick up again.

"I don't think that the general confidence that is vital for a resurgence of the market will take hold until the second half of the year," predicted Everitt.

Everitt said that those seeking to take out home loans during the next six months should not expect a relaxation in the tough lending laws that have become tighter and tighter since the National Credit Act was introduced. "We are likely to see the banks take a hard line on credit and enforce their 25 - 30% deposit requirements, making it really difficult for potential buyers to get home loans and effectively putting a lid on the market," said Everitt.

However, the wheels of change have already been set in motion, beginning with declining interest rate and inflation rates as well as a drop in fuel prices.

Everitt believes that by June, the South African property market should start to feel the affects of these positive trends and the global credit disaster will have settled somewhat by then. "South Africa, too, should begin to experience rising economic growth once more with a concomitant rise in employment that is the surest consumer confidence booster," said Everitt.