Research and opinion on the Property Market by FNB:
The home affordability picture deteriorated mildly in the 3rd quarter of 2015,continuing a gradual deteriorating trend that began back around 2013.
The way in which key affordability ratios are complied have been changed, using Per Capita Disposable Income instead of the SARB’s Average Employee Remuneration time series.
Of the 2 main affordability measures, the 1st measure, namely the “Average House Price/Per Capita Disposable Income ratio Index”, rose (deteriorated)slightly by +1.4% in the 3rd quarter of 2015 compared to the level for the
The 2nd measure, namely the “Installment Value on a new 100% Bond on the Average Priced House/Per Capita Disposable Income Ratio Index”, also rose (deteriorated) by a slightly higher +3.2% in the 3rd quarter.
Read more here: FNB Property Barometer_Residential_Affordability_Dec_2015