Annual house price growth moved lower in October Annual growth in the FNB House Price Index moved marginally lower in October, averaging 3.0% from 3.1% in September (Figure 1). Slower price growth from post-pandemic highs reflects relatively softer demand amid higher living costs and deteriorating affordability. Market volumes continue to soften, albeit modestly and are still above pre-pandemic levels. This is also reflected in the buoyant property transfer duties, which jumped by 21.7% y/y in September (or 25.6% in 3Q22 compared to the same period last year) (Figure 2). In line with this, mortgage extension remains relatively robust, with the latest data showing growth of 6.9% y/y in September, much quicker than the post-GFC average of 3.8% (Figure 3). Nevertheless, surveyed data shows signs of a weakening market, with estate agents' activity slowing towards the long-term average, and property sales due to financial pressure building up in lower priced segments.
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