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Standard Bank Residential Property Report
Standard Bank - South Africa

Outlook: The Standard Bank median house price index (smoothed) decreased by 2.5% y/y in April, following on average declines of almost 2.5% y/y in the first three months of the year. Clearly, households find economic and financial conditions extremely challenging, while the tightening of lending criteria by financial institutions makes it more difficult to access finance. Over the short term, economic conditions are expected to deteriorate further; however, positive developments on the inflation front, as well as the poor performance of the economy, will lead to additional interest rate cuts in 2009. Standard Bank expects a further 150 basis points relief in interest rates this year. It is anticipated that house price growth will be negative over the short- and medium term, but likely to bottom out towards the end of the year as the impact of interest rate cuts filter through the economy and the property market.
Standard Bank Residential Property Report

FNB House Price Index
First National Bank- South Africa
DOUBLE DIGIT HOUSE PRICE DEFLATION RECORDED FOR APRIL, AS AVERAGE PRICE LEVELFALLS BACK TO LEVELS LAST SEEN AT THE END OF 2006
The FNB House Price Index reached double-digit deflation in April 2009, declining year-on-year to the tune of -10.2%. This represents a deterioration on the revised -7.9% rate of year-on-year decline recorded for March, and was the 5th consecutive month of year-on-year decline in the house price index.

On a month-on-month basis, the rate of deflation was -3% in April. The further deflation in April implies that the FNB average house price level (R674,885 for April 2009) has receded back to a level more-or-less equal to the average price recorded in December 2006 (R674,669).

This steady deterioration is the result of a sizeable oversupply that has built up in the residential market, with selling due to financial pressure being a key driver of supply, and recessionary conditions in the South African economy hampering residential demand growth despite a series of interest rate cuts having already taken place.
FNB House Price Index

Buy property within 9 months - or weep
RealEstateWeb - South Africa
Property industry doyen Lew Geffen, who shocked market when he warned prices would plummet, says time running out for bottom-feeders

Lew Geffen
If it's your aim to purchase property at the bottom of the market while prices are at their lowest, then you'd better buy within the next nine months. That's the advice of Lew Geffen, chairman of Sotheby's International Realty in SA, who says all the signs are that prices will start to move upwards again at this time next year.
RealEstateWeb