Sackboy
Executive Member
The Council in Cape Town are about to start valuing all properties that they have on their rates books, We'll be able to compare with the last round.
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Question of the Day: How do you normally pay for purchases in stores?
Are house prices picking up again?
- Thread starter Sly21C
- Start date
@Sly21C: I work for Lightstone. You will see at the top of the page you can register for free (no spam involved), this will give you 100 credits. With this 100 credits you can do various things, one is a valuation report (40 credits I think). This valuation report gives you information about the property like the estimated value, last sales price, comparable sales in the surrounding area. Most of the major banks use our system to value a property when you apply for a bond.
You might find that this is quite useful information to have when you are in the market looking for a property
Thanks - I just used it - and got what I expected (already paid for the same report from somewhere else).
It costs 50 credits.
thatdamnJoe
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thatdamnJoe
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Cause the last time was so accurate right?
thatdamnJoe
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Take a look at the number of properties begin sold on auction and the number of customers defaulting on their house payments.
The consumer does not have the cash to sustain house price growth and the economy is not putting more cash in his hands at the moment.
My take, further decline or at least no growth for another year or so
The consumer does not have the cash to sustain house price growth and the economy is not putting more cash in his hands at the moment.
My take, further decline or at least no growth for another year or so
Natas
Expert Member
If you KNOW the answer to this question, then you can become very rich quickly...
But I think house prices will not pick up any time soon. You have to remember that from the high interest cycle, the costs of credit were high. People paid extra on their bonds, they paid extra interest on their credit cards, etc. The time that it will take to recoup that will be a while.
Also, the broader economy is in a recession. People have lost their jobs and more people will still lose their jobs. The number of people whose home loans are in distress will still go up for a while. I mean if people aren't paying their bonds, you KNOW there is trouble. The first thing you sort out is your place to stay, surely?
That being said, IMO the sign that the property market is about to turn, will be the relaxing of lending criteria by the banks. There are people out there with money who can afford to buy and now that the interest rates are low, they will buy, or at least try. BUT, only if they can get finance from the bank. Banks are still demanding 10 to 20 percent deposits. If people have this lying around, then fine, but its a huge difference from the past where you could get a 100% bond or even 108% bond.
Also, the fast growth that we saw in the past was perhaps a correction of South Africa's property prices, where property was a LOT cheaper than elsewhere in the world. Now that that has equalized, growth will slow. If you combine this with some of the losses that people have made on property recently, this will slow the rate at which property prices will grow. I do not think we will see property doing 30% per annum again for a while! IMO if you bought about two years ago, you're making a loss and maybe sitting with a little bit of negative equity, or at best, you are able to sell your house for what you bought it then.
But I think house prices will not pick up any time soon. You have to remember that from the high interest cycle, the costs of credit were high. People paid extra on their bonds, they paid extra interest on their credit cards, etc. The time that it will take to recoup that will be a while.
Also, the broader economy is in a recession. People have lost their jobs and more people will still lose their jobs. The number of people whose home loans are in distress will still go up for a while. I mean if people aren't paying their bonds, you KNOW there is trouble. The first thing you sort out is your place to stay, surely?
That being said, IMO the sign that the property market is about to turn, will be the relaxing of lending criteria by the banks. There are people out there with money who can afford to buy and now that the interest rates are low, they will buy, or at least try. BUT, only if they can get finance from the bank. Banks are still demanding 10 to 20 percent deposits. If people have this lying around, then fine, but its a huge difference from the past where you could get a 100% bond or even 108% bond.
Also, the fast growth that we saw in the past was perhaps a correction of South Africa's property prices, where property was a LOT cheaper than elsewhere in the world. Now that that has equalized, growth will slow. If you combine this with some of the losses that people have made on property recently, this will slow the rate at which property prices will grow. I do not think we will see property doing 30% per annum again for a while! IMO if you bought about two years ago, you're making a loss and maybe sitting with a little bit of negative equity, or at best, you are able to sell your house for what you bought it then.
I found this quite interesting using the Lightstone house valuation for my suburb - this is for freestanding - not sectional.
In 2007 - the average house price was 1.381m (119 sold)
In 2008 - the average house price was 1.513m (67 sold)
In 2009 - the average house price was 1.973m (17 sold)
Slowly but surely - the price has gone up, and the amount of houses sold are going down - going back to 2004.
It'll be interesting to draw this report at the end of the year again and see whats happened.
In 2007 - the average house price was 1.381m (119 sold)
In 2008 - the average house price was 1.513m (67 sold)
In 2009 - the average house price was 1.973m (17 sold)
Slowly but surely - the price has gone up, and the amount of houses sold are going down - going back to 2004.
It'll be interesting to draw this report at the end of the year again and see whats happened.
Rouxenator
Dank meme lord
I managed to get my house price down but overall it is still up by a little.
And I wanted house prices to hit the bottom 3 years from now..... But I also think that house prices will remain under pressure for this year and will gradually pick up after the world cup or end of next year. Maybe I must consider buying a house sooner? Say a year from now?
Im no expert, but I would suggest you buy now... I doubt the prices will drop further. In 3 years I expect the property boom to start again.
thatdamnJoe
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you mean you managed to get the municipality's valuation of your house adjusted
Thats not entirely the same as a price actually dropping