House prices continue to fall across SA
Several leading experts are concerned that South Africa real estate prices are set to fall as the economy struggles to gain momentum.
One of the country’s leading lenders suggested that falling house prices could initiate a serious price deflation. ABSA reports that residential real estate values had been steadily declining on a monthly basis for the last twelve months.
Mortgage rates for property in South Africa currently stand at 9 per cent – the lowest rate since the early 1980’s but forecast suggests that interest rates will begin to climb over the next eighteen months and may reach 11 per cent by the end of 2013.
This sentiment is echoed by mortgage company Ooba who believe that the price of property in South Africa plunged by almost 5 per cent in real terms during March.
Agents noted that home owners offering realistic sale prices are more likely to attract potential buyers from the domestic market and from overseas buyers.