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Homes for first-time buyers more affordable than decade ago

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Cape Town - House price and instalment trends for first-time property buyers over the last decade show that mortgage affordability has structurally improved, according to analysis by Standard Bank.

It said on Wednesday this is largely due to the median income of a first time buyer growing faster than the median price of a house demanded by a first time buyer, combined with historically low interest rates.

However, cyclically, due to SA being in a downward phase of its business cycle and in a hiking phase of its interest rate cycle, affordability is worsening, the bank cautioned.

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