House prices continue to deteriorate
The steady deterioration in house prices continued in April, according to FNB’s House Price Index released on Monday.
This was a result of a sizeable oversupply that had built-up in the residential market.
The number of owners trying to sell houses due to financial pressure was a key driver of the oversupply.
According to property economist John Loos, the April FNB House Price Index had reached double-digit year-on-year average house price deflation for the first time, to the tune of -10,2%.
This put the average house price level back to the level at the end of 2006, Loos said.
Original Post on Cape Town Property Bubble: House Price Drop Officially Hits -10%
