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How many sellers sold for a loss in January?

homeowners losing valueIn January, 12.3% of properties sold for a loss – and 76% of these homes (9.4%) were sold for 5% less than their original purchase price.

This is according to John Loos, FNB’s household and property sector strategist, who said according to deeds data property transfers registered by individuals below the value of R10m, 87.7% of total properties in January sold at above their previous purchase price.

“By comparison, shortly following the recession and interest rate peak of 2008/09, the estimated percentage of such resale price deflation peaked at 23.5% of homes sold in September 2009, with 20.6% selling at more than 5% below previous purchase price,” said Loos. “Further back, shortly after that short sharp interest rate spike of mid-1998, where the prime rate peaked at 25.5%, the percentage of homes resold at prices lower than prior purchase price also surged to peak at 26.8% of total sales (20.1% being at more than 5% below purchase price).”

During the boom years between 2000 and 2007, the percentage of properties resold at deflated prices dropped to as low as 2.3% of total sales by June 2006.


How many homes sold above previous purchase price?

73.6%: +110%

8.6%: 105% to 109%

5.5%: 100% to 104%


How many homes sold below previous purchase price?

2.9%: -0% to -5%

9.4%: -5%

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2 COMMENTS
  • Andre 7th March 2017

    “In January, 12.3% of properties sold for a loss – and 76% of these homes (9.4%) were sold for less than 5% of their original purchase price.”

    So does this mean that 9.4% of homes were sold for only 5% of there purchace price.
    The centence should have read: In January, 12.3% of properties sold for a loss – and 76% of these homes (9.4%) were sold for 5% less than their original purchase price.

    It makes a big difference!

    • David A Steynberg 8th March 2017

      Hi Andre,
      You are quite correct. Thank you for pointing this out. Will fix now.

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