SA house price growth slows
18 Nov 2011
South African house price growth is expected to remain subdued and in low single digits in nominal terms well into 2012, according to Standard Bank.
The bank's latest property report revealed that the median house price recorded marginally negative growth of -0.5 percent year-on-year (y/y) in October from a revised zero percent y/y in September.
The bank's latest property report revealed that the median house price recorded marginally negative growth of -0.5 percent year-on-year (y/y) in October from a revised zero percent y/y in September.
Standard Bank Home Loans research analyst Sibusiso Gumbi says consumer spending power is still low as seen in the CPI figures that rose to 5.7 percent y/y in September from 5.3 percent in August.
He says growth in total credit extension to households continued to slow in September to 5.0 percent y/y, from 5.2 percent y/y in August.
Growth in mortgage advances saw a slight uptick in September, growing by 2.2 percent y/y, from 1.6 percent y/y in August, he says.
Meanwhile, mortgage originator Ooba's oobarometer price index showed a negative y/y price growth of 1.1 percent to R823 476 in October down from R832 705 in October 2010.
The report indicates that the average first-time buyer's purchase price increased by 4.1 percent to R625 483 while the bank decline ratio decreased by 1.30 percent in October to 44.4 percent.
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Written by Denise Mhlanga | Published by Property 24
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