House prices sur­prise on the up­side

CityPress - - Tenders -

The Stan­dard Bank House Price In­dex for April rose by 6.9% over the past year. The main driver of prop­erty price in­creases was in free­hold prop­erty, which rose by 9.1%, com­pared with the sec­tional-ti­tle price in­dex, which in­creased by 7.6%. Mort­gage ad­vances, how­ever, only rose by 4.5%, sug­gest­ing a gen­eral de­cline in pur­chas­ing ac­tiv­ity in the prop­erty mar­ket.

Ac­cord­ing to the in­dex, the av­er­age house price ap­plied for with Stan­dard Bank in April cost R1 028 790, up from an av­er­age of R991 860 in the first quar­ter of this year.

Although to­tal in­come for an av­er­age buyer in­creased to R54 358 a month from R53 015 a month over the same pe­riod, it was not suf­fi­cient to com­bat ris­ing house prices.

In April, the av­er­age pur­chase price was 1.58 times the av­er­age an­nual in­come, up from 1.56 in the first quar­ter of the year.

This re­flects that, rel­a­tive to in­come, the av­er­age pur­chase price grew faster dur­ing this pe­riod, thereby re­duc­ing af­ford­abil­ity.

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