Property prices keep going sour

Quoting FNB's property strategist, John Loos, The New Age says that property price growth is expected to be just 2%, down from 3% in 2011. Loos says that estate agents are reporting that homeowners are selling homes in order to downscale and reduce their living costs due to on-going financial pressures.

Loos warns that further declines in the debt-to-disposable income ratios are expected this year. However, he does note that there has been an increase on spending to maintain homes in 2011 and this trend is likely to continue.

For more:

• The New Age: Property prices look dire

• FNB: FNB Economic Comment