Are high and forever-rising residential property prices really a good thing? Many seem to think so, but perhaps not if one considers the broader economic benefits of affordable property.
Understandably, lending institutions, and mortgage borrowers alike, don’t really want to see home values decline in nominal terms, because it is that value which determines the ease at which a financially pressured home owner can “trade out” of their property and settle the entire debt. The nominal home value provides security.
Read more here: FNB Property Barometer Property Weekly 9 Nov 2015