In another twist involving the public protector’s office‚ the Minister of Co-operative Governance an.
Standard Bank yesterday said no annual growth on its median house price of R570000 was recorded in February.
The Standard Bank median house price index for February 2008 said the five-month moving average was recorded at 3.25percent, which was the lowest it has been since October 2000.
The bank said the median house price had ranged from R550000 to R599000 since December 2006.
A Standard Bank economist, Sizwe Nxedlana, said that the 400 basis point interest rate increase, the introduction of the National Credit Act, and inflation had reduced the affordability for consumers, and eroded their purchasing power.
Nxedlana said the rigidity of the median house price in this range, the stagnation of house price growth and the lower demand for housing highlighted the headwinds facing residential property. The survey separates the residential property market into low, medium and upper price bands.
Nxedlana said the weakness concurred with the anecdotal evidence of sellers revising their price expectations downward, and of houses on sale remaining on the market for longer periods.
Standard Bank analysis showed that the lower end of the residential property market was being most affected by the tougher macroeconomic conditions.
"The median house price also hides some interesting dynamics between the different price bands.
"There has been a downward shift in the lower quartile house price on our mortgage book and an upward shift in the upper quartile house price."