Non-performing home loans have increased
The high consumer indebtedness levels and tough economic environment have led to the value of non-performing home loans at local banks increasing to R25 billion to R30bn. on Friday, Auction Alliance chief executive Rael Levitt said this excluded distressed property developments and commercial properties. The estimated value of non-performing loans was higher to 20 percent than when distressed property sales were peaking in 2009, He said.
Levitt attributed because many banks assisted debtors with delayed and extended repayment terms this higher to the value of transactions being. Average residential property market prices were to 35 percent from 30 percent lower than the market peak in midl of 2007. He said the market was probably near the bottom but next year, there would be further property price deflation. Jacques du Toit as Absa Home Loans senior property analyst told the month-on-month growth in nominal house prices had been slowing since the beginning of the year while average house prices in real terms were 13 percent lower than in 2007.
Levitt said the number of houses being sold through legal channels, had decreased slightly to about 1 000 a month.It is including banks’ voluntary distressed sales channels, insolvency sales and sales in execution.
