Stagnant interest rate deals blow to property market and economy

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Seeff Property Group Chairman Samuel Seeff has criticised the Reserve Bank's decision to keep the repo rate at 8.25%, calling it a blow to the property market and economy.

Seeff Property Group Chairman Samuel Seeff has criticised the Reserve Bank’s decision to keep the repo rate at 8.25%, calling it a blow to the property market and economy.Seeff adds that the decision, made by a split vote, is out of step with the country’s economic needs and insensitive to the struggles of consumers and homeowners.

Seeff notes that the interest rate, unchanged for over a year, is higher than post-2008 financial crisis levels, causing a 25% drop in property market value and stalling price growth below 1%.High interest rates and living costs are preventing first-time buyers from affording homes and causing more homeowners to fall into arrears.Despite these challenges, Seeff remains optimistic, believing an interest rate cut is imminent due to compelling reasons.

This is good news for buyers, who should seize the opportunity of flat prices before anticipated rate cuts.Despite mild tightening, mortgage lending conditions remain favorable for buyers. Buying now can lead to savings from future rate cuts and potential value appreciation when market competition increases.Optimism about the Government of National Unity suggests better times ahead.

With the economy’s past growth under a 2% lower interest rate as a reference, there is hope to return to similar prosperity.

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