Steady interest rates, declining house prices and near double-digit wage inflation are improving housing affordability, a survey by FNB showed on Tuesday.

FNB said with wage inflation averaging eight percent in Q2 and Q3 this year, the average house price/average remuneration index was likely to be on a declining trend. In addition, the cost of an instalment on a house is expected to be declining, after being on a steady rise due to interest rate hikes, given the 3Q sideway movement in interest rates.

Meanwhile, house price inflation continued its declining y/y inflation trend, from a revised 2.2 percent in September to 1.1 percent last month, the FNB House Price Index showed on Tuesday.

In real terms, that puts the September deflation rate — deflated using the CPI — at -9.6 percent y/y.

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