How high monthly repayments and interest rates are affecting home buyers
Despite high interest rates in 2026, signs of recovering buyer confidence emerge as lending conditions improve.
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Prospective home buyers have remained weary of monthly installments, despite the South African Reserve Bank (Sarb) keeping interest rates unchanged last month.
This was according to Adrian Goslett, CEO and Regional Director of REMAX Southern Africa, who said that while the interest rate environment has improved, borrowing costs continue to shape buyer confidence.
Goslett said in a statement, “Although interest rates have come down from their peak, they are still high enough to influence buyer-decision-making as buyers today are far more cautious. They want certainty that their monthly repayments will remain affordable.”
Goslett added that there are encouraging signs that buyer confidence is gradually returning as conditions stabilise and buyers are becoming more financially prepared.
“We’re slowly starting to see more momentum in the market as interest rates become less of a dominant obstacle than they once were. Buyers who are better positioned financially are beginning to re-engage more actively,” he said.
Recent data from BetterBond supported this shift.
According to BetterBond’s Property Brief for February 2026, home loan applications in January were 2.8% higher compared to January 2025 and 10.4% above January 2024 levels, signalling a steady recovery in buyer activity after the traditional year-end slowdown.
The report also showed that lending conditions improved, with the national home loan approval ratio rising to 63.5%, reflecting stronger confidence from financial institutions.
House prices are also increasing at a moderate yet sustainable pace.
BetterBond further reported that average house prices for all buyers rose by 4.1% in January 2026.
First-time buyer price growth was more contained at 1% year-on-year, suggesting that entry-level segments remain relatively accessible.
Growing buyer confidence was also reflected within the REMAX SA network.
Looking at their results from 2025, the brand’s reported sales increased by 18% year-on-year, while monthly registered sales rose by 14%.
The average selling price across the network showed steady growth, increasing to R1 920 976 in 2025 from R1 836 183 in 2024.
Looking ahead, there is growing optimism among industry commentators and economists that the current rate cycle may still offer some relief.
Based on prevailing economic forecasts and moderating inflation trends, there is a reasonable expectation that South Africa could see up to two modest interest rate cuts later this year.
While the current environment may still cause some buyers to delay their purchasing decisions, those who choose to enter the market now could be well positioned to benefit from improved affordability and stronger market momentum should further rate reductions materialise.
“While interest rates are still a consideration for many homebuyers, they are no longer the primary force holding the market back. As stability returns and lending conditions continue to improve, we can expect buyer activity to strengthen steadily,” Goslett said.
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