House Prices Drop!

[Michael Alexander]

I see in Fin24 today that the house market in ZA is stagnating, the houses got way to expensive and with the way the economy is going, nobody can afford the blerrie things...The agents have priced themselves out of the market.... NOw , for the first time in 8 years, house prices actually started to fall... the example the used, was a house costing... 570 000 this time last year now goes for 550 000..... they reckon it's gonna fall for awhile still...did some people get to greedy again and kill the hen that lay the golden egg......I wonder? The same way that tour operators and hotels in ZA have jacked their prices up through the roof and actually scared away some tourists and lost the local tourists who cannot afford it anymore......

[Dalene Steenkamp (Coetzee)]

That the reason, but also due to the fact that new credit law has put a halt to people overspending.  Demand thus smaller  but supply still big (people who want to sell)  -  economical impact :  when supply is bigger than demand the price drops.  Intrest rates are also killing people.  We are expecting another 0,5% increase shortly.