FRIDAY, 11.00AM
ABSA Bank, in its Quarterly Housing Review released on Thursday, says that house prices in SA declined by an average 3,7% in real terms during the first half of this year and, given high interest rates and high levels of household debt, the situation is not likely to improve.
Another factor contributing to the gloomy outlook, according to Absa, is the increasing cost of financing household debt, which now amounts to 14% of disposable income.
The bank said the Northern Province and Western Cape were the only regions to experience sharp price increases in the period under review.