ABSA: Real Price Decline Of 4.5% In 2008

ABSA, who are the largest mortgage lender in SA, are predicting a 4.5% real price decline in house prices in 2008. Jacques Du Toit is quoted as saying that for next two years there will be no real growth:

He says investors in the housing market should not expect to achieve positive real capital appreciation during the next 24 months, but with an increase in demand for rental property, an acceptable income return may be achieved during this period.

The demand for rental property is an assumption that I would not bet on as there are a lot of specuvestor properties out there standing empty that are going to be dumped on the market when they no longer appreciate at 20%+ a year further dampening prices even further and putting negative pressure on rentals.