South African house market cools down

There is a strong indication that South African housing is becoming slightly affordable.

House prices fell on an annual basis for the first time in almost eight years in March. This comes as borrowing costs continue to increase putting strain on consumers.

The Standard Bank Property gauge puts a median price of a South African house at R550 000. That is down from R580 000 in the same month in 2007.

Economists say an expected increase in interest rates point to further improvements in housing affordability.