House prices have fallen by 2.5% y/y in October.This is in keeping with the current depressed trend the property market is in.There are many factors contributing to this,some of which are the high rate of inflation and interest rates.

Another major factor is of course the affordability of buying a home,everything has just become so expensive.We all go on about having no disposable income,and in reality the effects thereof are great.The increasing cost of food and fuel eat away at our ability to afford the home of our dreams.The current repo rate of 12% doesn’t help matters either.Although i suppose that’s all basically the same thing anyway.

The homeowners wishing or needing to sell at the moment have basically no negotiating power.It is a buyer’s market and they are driving prices down.It’s all about supply and demand and at the moment the buyers are the item in demand.So for those who can afford to buy there are probably some great deals out there.

Most experts are also only predicting a real turnaround towards the end of 2009,after the interest rate has been cut a couple of times and households have had a chance to re-evaluate their financial situation.However we also all know that what one expert says today can be entirely contradicted by another expert the very next day.

So we are left with an unclear idea of exactly when things will turn around,but it also can’t stay this way forever.