From Realestateweb: Your home is worth 7% less than this time last year, with looming recession expected to wipe out more of its value – latest stats.
An interest rate cut and expectations that rates will fall further this year have failed to put the brakes on falling house prices.
Latest figures released by FNB suggest that house prices were on average 7% lower in February than same time last year.
What's more, this is believed to be the result of a decline in demand going back to 2007. A looming recession could wipe out even more of your property's value.
The FNB House Price Index, released on Monday, shows house price deflation"continued to gather momentum in February, from a January revised rate of -4,7% to -6,9% last moth", said FNB home loans property strategist John Loos. Taking inflation into account, the decline is not far off 12%.
"This is the fourth consecutive month of average year-on-year house price deflation, and it continues to appear likely that this situation of national house price decline will continue for most of 2009," he said.
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