Agrisell Logo +27 21 887 0468
You are here: Agrisell / Latest News / Property Barometer June 2017

Property barometer - June 2017

SHOWING ARTICLE 159 OF 203

Property barometer - June 2017

Category Market

The FNB House Price Index’s year-on-year inflation rate accelerated in May, but remains in lower single digits and negative in real terms In May 2017, the FNB House Price Index showed further acceleration in yearon-year growth compared with revised April growth, and has now shown accelerating growth for 5 consecutive months. However, at 4.7%, this remains a mediocre market, and adjusting for CPI inflation implies a negative growth rate in real terms. On a month-on-month basis, the index recorded a return to slowing growth in April and May, after a strengthening period in the 1st quarter of 2017, suggesting another possible housing market and economic “soft” patch emerging.

KEY POINTS

• The FNB House Price Index for May 2017 rose by 4.7% year-on-year. This is a mild acceleration on the revised 4.2% rate recorded for April, and the 5th consecutive month of year-on-year price growth acceleration.

• However, examining house price growth on a month-on-month basis, we see the onset of some mild slowing in growth in April and May. This suggests that, after a mildly better 1st quarter of 2017, the 2nd quarter may have once again been seeing renewed economic weakness along with the Housing Market slowing.

• In real terms, when adjusting for CPI (Consumer Price Index) inflation, the rate of house price growth was negative to the tune of -1.1% year-on-year in April (May CPI data not yet available), after a revised -2.4% in March.

• The average price of homes transacted in May was R1,112,466.  

For the full article click here.

Author John Loos, FNB
Published 23 Jun 2017 / Views -
Disclaimer:  While every effort will be made to ensure that the information contained within the Agrisell website is accurate and up to date, Agrisell makes no warranty, representation or undertaking whether expressed or implied, nor do we assume any legal liability, whether direct or indirect, or responsibility for the accuracy, completeness, or usefulness of any information. Prospective purchasers and tenants should make their own enquiries to verify the information contained herein.
Sign-up for our newsletter
Sign-up for Agrisell's informative monthly newsletter with the latest industry news.