SA house prices starting to fall!!

Do you think house prices are falling in real terms?

  • Yes

    Votes: 7 31.8%

  • No

    Votes: 12 54.5%

  • Unsure

    Votes: 3 13.6%
  • Total voters
    22
S

Skinner

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Yes! Yes! Finally house prices will become more affordable for those wanting to buy (assuming they can afford it, of course), and less affordable for those that took out a 100% loan from the bank, to impress the Jones' (instead of rather just renting a small affordable flat), and are now suffering with the outstanding loan balance exceeding the nett worth of the property! :o:p

Johannesburg - There is no longer getting away from it: SA house prices are now firmly in negative growth territory. Whether house prices are actually falling or whether growth is merely slowing has in recent weeks been a hotly debated topic, with many industry players insisting that property values are still intact.

But latest Standard Bank residential property gauge doesn't support this view. The index shows that property values have already taken a dive with median house prices falling 11.3% in June (y-o-y). That is the fourth consecutive month that prices have contracted and brings SA's median house price to R550 000, down from R620 000 a year ago.

Standard Bank data confirms that housing market conditions have rapidly deteriorated in recent months. New mortgage loans and re-advances granted, which is used as a proxy for housing demand, dropped by 25% in March 2008 (y-o-y).
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From: http://www.fin24.com/articles/default/display_article.aspx?Nav=ns&ArticleID=1518-1796_2350195

Yes! Time to tighten the belts for those fools! Tighten, yes tighten some more! That's the only way overall commodity prices will drop in SA so that I can come back to SA and reap the benefit of lower house and car prices. :cool:
 
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Skinner said:
Yes! Yes! Finally house prices will become more affordable for those wanting to buy (assuming they can afford it, of course), and less affordable for those that took out a 100% loan from the bank, to impress the Jones' (instead of rather just renting a small affordable flat), and are now suffering with the outstanding loan balance exceeding the nett worth of the property! :o:p


From: http://www.fin24.com/articles/default/display_article.aspx?Nav=ns&ArticleID=1518-1796_2350195

Yes! Time to tighten the belts for those fools! Tighten, yes tighten some more! That's the only way overall commodity prices will drop in SA so that I can come back to SA and reap the benefit of lower house and car prices. :cool:
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Stop bragging about your Euros FFS:D

Just cashed some in today, rates starting to look better.

re houses, remember water slides when we were kids, we loved them but our parents always knew it would end in tears.

Wheee
 
it's good for some, and not so good for others. (nonsensical statement of the day nomination hey...)

i remember around 3 months ago I said they were gonna sink like a stone, so I'm rubbing my crystal ball right now with a smile on my face. But I really do feel sorry for those who got caught up in this mess..those that bought in recent years.
 
So does that mean that if I wanna sell my house for R3,2 million, I should really look at selling it for perhaps R1,5 million?
:confused:
 
Question is, if you own property outright would you suggest selling or riding it out?
 
It's a buyer's market now. Which is nice, since that is exactly what I want to do! :D
 
iDenTiTy_CRiSiS said:
So does that mean that if I wanna sell my house for R3,2 million, I should really look at selling it for perhaps R1,5 million?
:confused:
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sell it for whatever you want to..but there will be more desperate sellers than you, who will undercut your price to get their house sold.

Fudzy said:
Question is, if you own property outright would you suggest selling or riding it out?
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tough call. if you arent in financial problems, wait it out. if you were really clever you wouldve sold last year, rented now and buy back in after 3 or 4 years.

EtienneK said:
It's a buyer's market now. Which is nice, since that is exactly what I want to do! :D
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odd that..when prices rise, the "sold" prices are dictated by buyers. buyers chase each other for a particular house, upping their bids until the seller agrees to a bid. that is the sold price, dictated by the buyer.

when markets fall, the sold price is dictated by the seller. it makes no difference what you price your house at, when buyers are scarce then the cheapest/quality ratio house will get sold, the rest will end up reducing and waiting some more..and some more, and reducing again etc. you have to be the cheapest seller, so the seller is the one who determines "market value"

when the place gets sold, that now becomes the NEW market value, an everybody else sorta has to get back in line and lower their prices to compete.

odd little world we live in.

property is dependant on supply and demand. of credit. if people get cheap credit, they buy houses, if they cant, they dont. (+90% of the population, there are exceptions)

what should happen next is rents will go up slightly...then a few months later come tumbling down as reality sets in.
 
EtienneK said:
It's a buyer's market now. Which is nice, since that is exactly what I want to do! :D
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Ditto for me! :D

I'm going to wait a bit longer still, prices are likely to fall even more, especially at insolvent auctions :D
 
I've been browsing various property sites... it seems the downturn is in the upper end of the R2.5-R4 million range... theyre dropping 5-15%. The R600-R1.2million seems to be the same with minor differences.
 
blunomore said:
Good for you.

You're in Europe? Pity you can't BUY good weather though ;)
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Actually, our weather is quite good at the moment, with temperatures in the high 20's. Perfectly pleasant.

I'd prefer bad weather above impressing the Jones' anyday, anytime. You can have great weather and the latest 5-series on your massive driveway but it doesn't put food on the table. Typical SA mentality.
 
Skinner said:
Actually, our weather is quite good at the moment, with temperatures in the high 20's. Perfectly pleasant.

I'd prefer bad weather above impressing the Jones' anyday, anytime. You can have great weather and the latest 5-series on your massive driveway but it doesn't put food on the table. Typical SA mentality.
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Celsius?

Don't think blu has a BMW.
 
Sig quote:

350+ years to build a country, 14 years to destroy it.
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And hopefully for you the falling house prices are not a result of investor sentiment related to your sig.

Now, surely you are going to wait until the house market is at the bottom before you buy in, and when will you know that?
You may buy into the property market now and see a further collapse, and it would destroy your investment, and possibly tie up your liquidity at the time you decide that it's time to leave SA for good for the safety of your family that you intend making.

House price collapse is not in the general public's interest, and may just be a sign of Zim 2.0
 
Frankie said:
Sig quote:



And hopefully for you the falling house prices are not a result of investor sentiment related to your sig.

Now, surely you are going to wait until the house market is at the bottom before you buy in, and when will you know that?
You may buy into the property market now and see a further collapse, and it would destroy your investment, and possibly tie up your liquidity at the time you decide that it's time to leave SA for good for the safety of your family that you intend making.

House price collapse is not in the general public's interest, and may just be a sign of Zim 2.0
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Simple, when interest rates start to drop, house prices will rise again, at least maintain a stable growth, and it will be easy to witness that in the market so immediately at that turning point is the best time to buy.

Everything goes in cycles, you know. At least still for SA.
 
As I have money invested in un-bonded property in SA , I hate to see the prices dive, but I have fears that they may never recover in real terms.
I wouldn't buy soon, or most likely never - reason being that I no longer have confidence that things will recover - Zim 2.0
When making your decision with regards the timing to buy you should also take into account the exchange rate, particularly if there's a remote chance of you deciding to leave SA.
 
Skinner said:
Yes! Yes! Finally house prices will become more affordable for those wanting to buy (assuming they can afford it, of course), and less affordable for those that took out a 100% loan from the bank, to impress the Jones' (instead of rather just renting a small affordable flat), and are now suffering with the outstanding loan balance exceeding the nett worth of the property! :o:p


From: http://www.fin24.com/articles/default/display_article.aspx?Nav=ns&ArticleID=1518-1796_2350195

Yes! Time to tighten the belts for those fools! Tighten, yes tighten some more! That's the only way overall commodity prices will drop in SA so that I can come back to SA and reap the benefit of lower house and car prices. :cool:
Click to expand...

We are all so happy for you :rolleyes:
 
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