Property more affordable

Thursday's cut in interest rates will make property more affordable, especially for buyers in the lower to mid-price levels, a realtor said. In addition the cut would provide additional support for a gradual relaxation in bank lending criteria, Jawitz Properties CEO Herschel Jawitz said in a statement. While there were signs the economy was recovering, it would be slow and there were still concerns about its sustainability. "From a residential property perspective the same sentiment would apply.

While there continue to be signs that the market is recovering, prices are going to be slow to respond and that high levels of indebtedness are going to continue to be a factor affecting affordability." On Thursday the Reserve Bank's governor Gill Marcus announced that its monetary policy committee would trim the repo rate by 50 basis points to 6.5 percent. This caused the prime rate by major banks to be lowered to 10 percent.

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