Market backbone

More than 160 000 black economically mobile buyers are now able to afford a median priced house of R435 000. According to Standard Bank economic research head Elna Moolman, this emerging middle class would support the residential property market. Other factors which would support the market include low interest rates, generous gains in disposable income due to accelerating growth and consecutive cuts in income taxes.

Interestingly the bank used median house prices instead of average prices for its residential property guage because the median house price was more representative of trends in the market. A market which could be skewed by the inclusion of the sale of very expensive homes.

Article on Business Day and an interview with Dr Moolman on Moneyweb.