At the end of 2013, South African home owners and property investors were rewarded with the biggest annual house price growth in 6 years. Average house prices as recorded by ABSA grew by 9.92% (rounded up its 10%) in 2013 v 2012.
House prices have been stagnating for the last 6 years growing on average slower than inflation. The last time SA house prices saw growth of this kind was back in 2007 when prices grew by 14.54%. But 2007 was to dramatically herald the end of the property boom as the market overheated and credit lending was subsequently tightened. Since 2007, house prices grew slower than inflation meaning that house prices in real terms actually declined year on year. This left property investors who were late to the party poorer.
Growths in each of the years after 2007 were:
All this low growth meant that at…
View original post 135 more words