Loading...
See More

House price growth at 2-year high

May 02 2012 11:28 Sapa

Related Articles

Falling US house prices drag buyers down

Rental property - do your (home)work

FNB: Real house prices to decline

New valuations could involve rates shock

House prices cheaper than in 2007 - Absa

Whether palace or shack, prices shock

 

Johannesburg - House prices in April showed the highest year-on-year growth since June 2010, according to the FNB House Price Index released on Wednesday.

"The FNB House Price Index showed a further acceleration in April, up from a revised March growth rate of 8.1% to 8.6% year-on-year," FNB Home Loans strategist John Loos said in a statement.

"This is the highest year-on-year growth since June 2010."

However, real houses prices - where the price is adjusted for inflation - were 12.6% lower in March than at their peak in February 2008.

Since the inception of the index in July 2000, house prices in real terms had increased 70.3% by March 2012.

Nominal prices - which do not factor in inflation - were 231.7% higher in April 2012 than prices in July 2000.

Loos said various factors contributed to the improvement in house prices in April.

"The recent support for a moderately improved residential market comes in part from a possible greater willingness of banks as a group to provide home loans.

"However, we believe that it is also very much to do with a recent improvement in real economic growth, which in turn supports employment and household disposable income growth."

He said the lagged impact of earlier positive developments could also have played a role. It was too soon to suggest house prices were set to show much better growth, Loos warned.

"Given the current fragility in the world economy, and evidence pointing to global economic growth slowing once again, it appears too early to expect a sustained move to higher house price growth in South Africa."

house prices
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

New forms of digital technology are changing the very ways in which entrepreneurs run their businesses.
 
 

Device lets disabled people talk through their nose

A device that converts nose breaths into speech will open new doors for people with Parkinson’s or motor neuron disease.

 
 

For chic geeks...

It’s THIS easy for someone to steal your ATM pin!
This is why you should install iOS 8
17 photo illusions that look so real
Check out the speed of this robo-cheetah!

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...