Standard Bank’s house price index shows a moderate uptick in house-price growth in October to 8% growth compared with a year ago, although the researchers say that this does not signal an improvement in the housing market or general consumer activity.
“Property market data continue to reflect a moderation in consumer activity, despite a temporary uptick in house price growth in October when residential properties were 8% more expensive than a year earlier,” said lead researcher Elna Moolman.
“The uptick in house price growth in October is not signalling an improvement in the housing market or general consumer activity. Rather, it is merely reflective of the month-to-month volatility prevalent in most economic indicators and the challenges characteristic of house-price data.
“We have cautioned in previous reports that house-price indices are subject to even more difficulties than most economic data series,” she pointed out.
The median house price was reported to have risen only marginally from R530 000 in September to R540 000 in October, while the five-month moving average growth rate decelerated to 5,4% year-on-year (y/y) in October from 6,5% y/y in September.
“The moderation in the housing market is expected to continue on the back of deteriorating household finances and the decline in buy-to-let investors’ yields and enthusiasm,” concluded Moolman. — I-Net Bridge