By Proffesor Ndawonde
Sun City -The current global conomic environment is cause for concern for all of us, according to North West Premier Edna Molewa, who says South Africans are in for a tough time.
She said while it was expected that the value of houses in South Africa would decline, the high cost of living was making it difficult for owners to make their monthly bond payments.
Speaking at the International Housing Finance Conference in Sun City on Monday, Ms Molewa said what began as a niche problem in the US has now spread dramatically to the rest of the world, and developing countries would be affected.
The sub-prime market fallout began with the US housing bubble bursting last year.
"Delinquencies and foreclosures have climbed sharply, with an estimated two million sub-prime loans likely to default, creating a precipitous decline in housing values in many markets.