Consumers are feeling the financial strain as interest rates continue to rise

The recent announcement by the Monetary Policy Committee (MPC) to increase the repo rate by 50 basis points to 8.25% has left debt holders struggling to manage their finances. The prime lending rate is now at 11.75%, the highest it has been since 2009.

Morné Prinsloo, a local Roodepoort area agent from RE/MAX Masters, is not surprised by the announcement and warns that managing debt will become increasingly challenging. This interest rate hike may push many consumers beyond their financial limits. The property market has already seen a shift, with more enquiries from sellers and less interest from buyers. Every interest rate hike reduces consumers’ spending power and puts their affordability levels under further pressure. A hike like this is likely to cause activity within the property market to tighten even further.

Prinsloo advises that good real estate professionals should strongly encourage their buyers to get preapproval before starting the house hunting journey to avoid the disappointment of discovering that they cannot afford their dream home. Sellers should also be cautious of any real estate professional who tries to overprice their home just to land the sole mandate, as this can be detrimental to the sale, especially during this time.

To set a fair asking price, Prinsloo suggests finding out what similar homes are selling for in the area and using this as a guide. If an agent proposes a price that is significantly higher than the average selling price in the area, it is unlikely to be fair market value for the home.

While experts were hopeful that the hiking cycle might be near its end, the current sentiment seems to point to this being the last hike in the cycle. However, there is no guarantee of this as inflation continues to fluctuate from meeting to meeting.

As a parting piece of advice, Morné strongly urges consumers who are facing financial difficulties to seek assistance before their situation spirals out of control.

It is crucial to take action rather than doing nothing when you are struggling. You can schedule a complimentary consultation with Morné Prinsloo, your trusted RE/MAX agent in Roodepoort, Krugersdorp, and the surrounding areas. During this consultation, you will gain valuable insights into the current market trends and explore various options that could potentially enhance your financial standing.

Don't let your financial troubles overwhelm you. Reach out to Morné today on 079 047 5172 / This email address is being protected from spambots. You need JavaScript enabled to view it. and take the first step towards a brighter financial future.