Home is where the hurt is: house prices may fall 14.5%
Despite aggressive interest rate cuts, house prices could decrease by as much as 20% in some areas
SA’s R5.7-trillion housing market is heading for what could be the biggest drop in prices and sales volumes on record. Data analytics group Lightstone last week warned that average house prices (in all price categories) could sink by up to 14.5% by year-end.
Leafier suburbs, where properties typically trade for more than R3m, will be hardest hit, with prices potentially declining by up to 19% by the fourth quarter. That far outweighs the fall of about 5% in luxury house prices recorded during SA’s previous housing recession, in 2008/2009, and equates to a hefty R950,000 knock on a R5m property.