More people are selling to upgrade and house prices are set to increase.
The property market ended on a high in 2013, showing an increase in house prices, bond sizes and bank approval rates.
According to the FNB second quarter house price review, house prices continued to increase in the second quarter of 2012.
Last week’s market carnage in the US and Europe spread to Asia this morning. Now the ball is in the central banks’ court, writes Matt Quigley.
FNB says house prices in April showed the highest year-on-year growth since June 2010, but were still 12.6% lower than 2008 levels in real terms.
Another bad year for house price growth has given the real estate industry a tougher climate as commission earnings for agents decline.
The year-on-year growth in residential house prices was constrained in April, according to the Absa House Price Index released on Monday.
Banks keep lowering their lending criteria and house prices keep going up.
A person now needs more than R1-million to buy an average home in South Africa.
House price deflation in May was the biggest since September 1986, Absa’s House Price Index released on Monday showed.
House prices are continuing to decline, due to a sizeable oversupply that has built up in the residential market, FNB said on Monday.
The household sector, plagued by lower levels of employment and declining disposable income, was expected to continue experiencing financial strain.
The average nominal price of middle-segment housing declined by 2,7% year-on-year (y/y) to R941 600 in April.
The steady deterioration in house prices continued in April, according to FNB’s House Price Index released on Monday.
According to Absa’s House Price Index, the average nominal price of middle-segment housing dropped by 0,4% year-on-year in March 2009.
House prices have continued to fall, Absa said on Thursday as it released its house price index for February.
Despite the economy slowing down and high interest rates, SA’s first-time home buyers stand a good chance of having their home loans approved.
The FNB house price index recorded 2,3% year-on-year price inflation in August, compared with 3,5% in July, the bank said on Thursday.
An index tracking median house prices in SA fell 1,8% in August from a year earlier as tough financial conditions continued to weigh on the sector.
The residential property market was unlikely to escape its difficulties in the near term, essentially due to the state of household finances.
