Despite real estate agencies trying to convince you differently, real estate prices are further to drop in 2009 and only in 2010 will there be a slow improvement.
The year-to-year decline of property prices in South Africa was 15,3% and the consensus is that at leats a further 5% decline will happen in 2009:
“Price deflation for this year is thus still expected, and the FNB House Price Index average for this year is projected to decline by around 5%,” says Loos.
The SA home loan market amounts R 190 billion a year. In 2008 this activity dipped 30% and Market Beckett of Bond Choice projects this to further decrease through 2009, despite the interest rate decreases.
Dr. Johan Botha, economist of Standard Bank says: “The overall consensus from property commentators is that although SA may certainly not have seen the bottom of the curve yet.”
Saul Geffen, CEO Ooba, a mortgage bond originator, said last Friday that only last January prices went down 4,8% and confirmed this pattern will continue for the rest of 2009.
