Absa, which has been monitoring house prices since the 60s, says the average house is now worth less than it was a month ago.
Its latest figures, released on Friday, indicates that the average house in South Africa cost about R963 500 in November, about 0,1% less than in October.
Real house prices, which take into account the effect inflation has on purchasing power, have dropped by more than 10% year-on-year.
This year houses are expected to have increased in value by about 4% overall, but the forecast for next year is for houses to drop on average by at least 3%.
And there you have it folks. Nominal price drops. If you're a specuvestor and you bought in the past two years and you are not cash flow positive you're about to lose a truckload of money.
So if you bought a house for R1 000 000 today in a year it would be worth R970 000. You would have also paid over R160 000 to basically rent your house from the bank.
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