For credit-dependent home buyers, the home affordability picture deteriorated further in the 1st quarter of 2016, continuing a gradual deteriorating trend that began back around 2013, driven by further interest rate hiking early in the year.
Of the 2 main affordability measures, the 1st measure, namely the “Average House Price/Per Capita Disposable Income ratio Index”, declined (improved) very slightly by -0.3% in the 1st quarter of 2016 compared to the level for the previous quarter.
However, the 2nd measure, namely the “Installment Value on a new 100% Bond on the Average Priced House/Per Capita Disposable Index”, rose (deteriorated) by +4.3% in the 1st quarter.
Read more here: FNB Property Barometer_Residential_Affordability_Jun_2016
