FNB: Home affordability to drop

Comment on this story
PropertyTwo Independent Newspapers. Photo: Leon Nicholas.

Johannesburg - House affordability for the rest of the year was likely to decline, after a number of years of improvement, First National Bank said on Wednesday.

While house price growth was still solid, interest rates were expected to increase and average employee pay growth was struggling, the bank's household and property sector strategist John Loos said in a statement.

House price growth had started the year higher than employee remuneration growth, as interest rates were now believed to be in a rising phase.

“It also looks unlikely that housing affordability will meaningfully improve its affordability position relative to consumer goods and services affordability in the near term,” Loos said.

“Therefore, the overall affordability picture for 2014 looks set to be one of mild deterioration, and this informs our expectation that house price growth will slow mildly further through 2014.” - Sapa

sign up

Comment Guidelines

  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.

  5. Verified email addresses: All users on Independent Media news sites are now required to have a verified email address before being allowed to comment on articles. You are only required to verify your email address once to have full access to commenting on articles. For more information please read our comment guidelines