Property Barometer - January 2016
In January 2016, the FNB House Price Index index recorded a 6.8% year-onyear rate of increase, which is very similar to the revised rates of the prior 3 months, suggesting that year-on-year house price inflation is in a peaking phase after prior acceleration. On a month-on-month basis, the inflation rate has been steadily slowing for some months, signaling an imminent slowing in the year-on-year rate. The FNB Valuers’ market perceptions appear to be supportive of the expectation of slowing house price growth to come, having perceived some mild market weakening in the Market Strength Index (MSI) of late. That is over and above a raft of weak economic data in recent times, along with further interest rate hiking early in 2016.
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Author John Loos, FNB