By Roy Cokayne, Business Report
House prices, excluding the effect of inflation, were in line for a drop of about 6 percent on average this year, with a further decline of 3.3 percent next year, Jacques du Toit, an Absa senior property analyst, said yesterday.
Market activity and both nominal and real house price growth were forecast to taper off further this year and into next year.
Absa's latest house price index, released yesterday, shows that real house prices dropped by 6.3 percent year on year in May, the fourth consecutive monthly decline and the biggest since April 1993, when it was minus 7.7 percent.
Following on from news by originator Ooba that 50% of home loan applications were declined in June, times do not look good for property sellers and buyers. However Justmoney.co.za's home loans section can help you find the best solution.