October 2016 saw year-on-year growth in the average nominal value of middle-segment homes in the South African housing market remaining relatively low against the background of trends in and prospects for the economy and the household sector.

Thursday, 29 September 2016 11:32

Household credit and mortgage balances

Growth in outstanding credit balances in the South African household sector remained low at 1,4% year-on-year (y/y) up to the end of August 2016.

August 2016 saw year-on-year growth in the average nominal value of middle-segment homes in the South African housing market slowing down further to its lowest level in almost four years.

Building activity in the South African market for new housing showed some divergent trends in the first half of 2016.

Based on data published by Statistics South Africa, building activity in the South African market for new private sector-financed housing (see explanatory notes) remained under pressure in the first five months of 2016, with much subdued year-on-year growth in activity levels in May this year.

Residential building activity in the South African market for new housing remained relatively subdued in the first four months of 2016 compared with the corresponding period a year ago.

The value of and growth in outstanding credit balances, especially unsecured credit, in the South African household sector was in April 2016 impacted by the inclusion of data for the new African Bank as from that month.

Relatively stable growth in household credit and mortgage balances.

The first three months of 2016 saw growth in the average value of middle-segment homes in the South African residential property market remaining relatively stable at a nominal 5,7% year-on-year (y/y).

ABSA Home Loans Property Analyst, Jacques du Toit, notes further uptick in household credit and mortgage balances growth.

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