SA property practitioners have indicated a widening gap between income levels and current house prices, according to FNB’s Residential Property Barometer for August 2023.
Approximately 45% of estate agents surveyed assert that income levels have considerably lagged behind house prices, while 24% believe income has managed to keep pace.
A large proportion of sellers have needed to recalibrate their expectations and reduce their asking prices.
While the average discount on asking prices has remained consistent, hovering at 10%, FNB’s survey suggests that 81% of sellers in Q2 2023 were compelled to lower their asking prices, reflecting an increase from 75% in the previous quarter. Collectively, this indicates a subdued environment for house price growth however, variations are evident across the different regions with data highlighting relatively stronger performance in the Eastern and Western Cape.