If you have been watching or reading the recent news you should have heard Tito Mbweni, our new Finance Minister give the recent medium term budget review on 23rd October. In summary, it showed reduced revenues, higher than expected spending, reduced employment rate and low forecast growth.
We also attended a presentation by John Loos, the FNB economist who had the same message; things will get worse before they get better. It will take a while to undo the damage done to the economy over the past 5 years or so.
As the economy has a major impact on the housing market, it seems as if there will be tough times ahead on all fronts. The house prices in Constantia have only just started coming down, and if it is similar to the 2008 downturn, it will be about 3 years before we see an upward trend again. House prices are cyclical, they go up a lot, come down a little, with a long term trend that has always outperformed inflation. One buys and sells in the same market, and now is a great time for first time buyers, and those looking to upscale. And please note that we have talked to people from Europe, Canada and Asia - also complaining that the house market is slow, and prices are down... So we are not alone! In tough times like these, it is important to choose your property agent carefully, one with the experience and the backing of a reputable company to sell your property and we hope you choose Seeff.
Key points from Budget: