Residential property market wake-up call in six charts

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Average home loan amount drops for the first time since 2009. Eight out of 10 sellers have had to lower their asking price.

Data from the most recent FNB Property Barometer shows a residential property market that is not exactly what you would describe as being in rude health.

It also references year-to-date tax data which shows that property transfer duties are 10.3% lower than the same period in 2022. In real terms, in other words adjusted for inflation, the FNB house price index has been in decline for 26 months. The post-Covid-19 pandemic mini-boom saw prices jump by over 2% , but the index has been negative in real terms for many, many years.

This translates to properties being on the market for longer. FNB says “agents now estimate that 56% of properties listed for sale take three months or longer to sell, an increase from 33% in Q1”.FNB says feedback it has received from estate agents “indicates a widening gap between income levels and current house prices”.

All of this translates to a flat market, with the number of mortgage registrations back at their long-term average since 2010.

 

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