So what is happening with house prices at the moment?
As predicted very little. Housing has firmly re-established itself as a place to live rather than to make money off.
Nominal house prices continue to creep upwards as per history dictates in South Africa with nine straight months of month on month growth since Nov 2010.
While CPI continues to stay low, there has been a stem to the tide of the real house price drops for now. House prices actually grew in real terms month on month April, May and June 2011.
But with the clouds of further global slowing gathering, the impact of which crystalised itself out for everyone to see in the form of open lawlessness and theft in the UK riots – we can expect further pressure on prices and growth in the future.
Jobs are expected to fall, interest rates remain stable for now but may move up depending on the repercussions from the US down-grade and rates and general living costs continue to increase.
Tenants are feeling the squeeze with the number of good payers decreasing as per TPN stats recently released.
So the recommendation continues to be focus on portfolio consolidation and deleveraging while keeping an eye on the middle term.