Sellers forced to drop the asking price of their homes
Depressing news for homeowners placing their houses on the market - the latest FNB Residential property barometer showed that nearly 90 percent of homes on the market in the third quarter sold at less than the asking price.
Stubborn sellers not wanting to budge on selling price have to keep their homes on the market for longer - the average length of time a home stayed on the market shot up in the third quarter to 20 weeks, or five months.
"That's a sharp increase and an indicator that sellers are not completely in touch with reality when it comes to the asking price," said Sean O'Sullivan, head of sales at FNB Home Loans.
According to the bank's house price index, house prices are heading towards deflation.
FNB property strategist John Loos said global economic growth risks were the biggest risk to the local property market, and that it was "naive" to think South Africa was not exposed to the financial crisis in the US.