Ooba (formerly MortgageSA before deciding to listen to some idiot consultant and change their name to something which makes no sense) have released the 'Oobarometer' which tracks house prices and (suprise!) it confirms the market is tanking.THE fact that residential property prices are on the decline was given further confirmation yesterday with the launch of Ooba’s own house price index.
This showed prices had fallen 1,4% since June.
Ooba, SA’s largest bond orginator, which has a market share of 25%, said its index, called the Oobarometer, showed the average price of a property acquired last month was R782385, down 1,9% from July last year, when the average price was R798300.
And with inflation at 10%-12% that's a 12%-14% drop in real terms. If you took out a mortgage in the past year there's a good chance you're now paying more for an asset (and about to pay even more when the interest rate goes up next week) that is worth less than it was a year ago.
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