It is still a great year to put property on your Christmas list despite the period of high interest rates and the subsequent aggressive rate cuts. While the market experienced disappointment with the aggressive rate hikes that took the Prime Rate to 11.75% in 2024, the current rate of 10.50% remains well below the highs of the early 2000s and is now in an easing cycle.
The Repo Rate is currently 7.00% (down from 7.25% in May 2025), which has begun to make home loans more attainable again. You can still get out of your rental, buy a bigger house, or move to a better neighborhood as buyers are now capitalizing on the rate cutting cycle that began in late 2024.
Based on a standard calculation for a home loan over a 20-year period, the monthly repayment figures for the current Prime Rate of 10.50% are significantly higher than the article's original figures, but the market is responding positively to the trend of cuts.
Despite the period of high rates moderating activity, the market remains robust with sustained demand. Current transaction volumes are recovering, and the market is showing resilience.
For the Seeff Property Group, the market is beginning to show promise, and we expect more of the same going into 2026, supported by the current rate cutting cycle and favorable mortgage lending conditions. Our expectation is that the Prime Rate should continue to ease, and further cuts should be fairly consistent, at least until the end of next year.
It is still one of the best times to buy a house in a decade for those who can afford the current repayments, as they will benefit from future rate cuts which will decrease their installments. Market-related asking prices remain key to a faster sale and higher selling to asking price ratio.
Buyers will need to act quickly though, especially in the lower price bands and high-demand areas where there is no shortage of willing buyers looking to capitalize on the favorable market conditions of a new rate-cutting cycle.
