South African house prices slowed dramatically in October, scarcely growing at all versus September and growing at a mere 2.06% year to date v 2010. With only two months of data left to go in 2011, nominal house prices look set to end the year at the slowest annual growth since 1986 (with the exception of 2009).
Real house prices look set to notch up their third year of real declines out of the last 4 years. Real house prices currently stand at -2.16% v last year. If you bought your property in 2007, on average you have lost 12.6% of the real value of that property over the last four years (ouch) as inflation has outstripped nominal house price rises.
Since the beginning of this year, HPSA readers have submitted their forecasts for nominal house price growth this year v last year. Below is the summary, currently J Du Toit (ABSA) and “SJB” are the closest to actual. The predictions competition closes on 30 November so if you have another prediction then post it on the “Predictions” page now.
The winner will win a mystery prize courtesy of HPSA!