You are here: Blue Chip Properties / Latest News / A Word To Our Sellers

A word to our Sellers

SHOWING ARTICLE 45 OF 97
GALLERY

A word to our Sellers

CAPE TOWN has had a stock shortage largely due to the low interest rates and as a result Buyers have been scrambling to invest in private homes acquired for letting purposes, thus pushing up the value of homes across the Cape Peninsula.

However, a note of caution is that Sellers' expectations may not be met once interest rates escalate and living costs are impacted by the higher cost of credit, fuel and imported goods. Prospective Sellers should seriously consider going onto the market as soon as possible to "catch the wave" before price resistance is encountered. Interest rate hikes and the possibility of over-priced purchases made now could be seen by Buyers as bad short- or medium-term investments.

Homes which don't attract offers within a few weeks of marketing will probably fall within this sector!

We have just had an interest rate increase of .5% and believe there will be more to follow. We expect interest rates to increase by a cumulative 150bps this year, on the back of rising inflationary pressures, exacerbated by the ongoing geopolitical tensions. Be careful of over pricing your property ... we can feel the resistance!

Author Blue Chip Properties
Published 25 May 2022 / Views -
Disclaimer:  While every effort will be made to ensure that the information contained within the Blue Chip Properties website is accurate and up to date, Blue Chip Properties makes no warranty, representation or undertaking whether expressed or implied, nor do we assume any legal liability, whether direct or indirect, or responsibility for the accuracy, completeness, or usefulness of any information. Prospective purchasers and tenants should make their own enquiries to verify the information contained herein.