What is more, these rises are not confined to the affordable category, although value increases here are high - top end properties above R3 million have also for the first time in many years shown a slight increase of 4% in value.
These figures correlate closely with those of Absa, whose latest year-on-year review shows a 1.1% increase in middle bracket housing, a 0.8% increase in large houses and a 10.4% decline in prices for small houses below 140 m2. The Lightstone prediction is that in the year ahead price rises will continue at ± 6%, with the graph indicating further slight increases in the months to come.
"There has been a steady decline in the sale execution notices and in the actual sales carried out following such notices. By the third quarter of 2012 the number of sales in execution per month had dropped to a few hundred, whereas the figure in 2009 was over 3 000 per month, and in the second quarter of 2009 it was still above 2 500," says Clarke.
"I think that the survey indicates that a recovery in residential property has already begun and will continue, albeit slowly. Lightstone's price rise predictions, although cautious, are positive - they predict a 6% rise in house prices for 2012/2013. It is now up to the banks to regain a willingness to take on more risk - within the provisions of the National Credit Act - in the home loan market, which is totally reliant on bank finance of this kind."
