The inflation spike is temporary while the impact of the higher interest rate on the economy and property market has been more prolonged.
Despite an improvement in market activity, overall property transaction volumes remain about 18% below what they should be.
“In 2021, when the interest rate was around 7.25%, the market averaged around 22,000 monthly registered transactions; this is now down to 18,000 five years later, says Samuel Seeff, chairman of the Seeff Property Group.
He adds that this is not good for either the property market directly, or the economy indirectly.
“The high interest rate over the last five years also continues to directly impact the ability of first-time homebuyers to enter the housing market.
