• 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

  • Rich getting richer

    Economists differ on how to tackle the chasm between rich and poor, says Leopold Scholtz.

See More

House price growth declining

Aug 01 2012 14:46 Sapa

Related Articles

Average UK home slumps to R2.12m

Houses on the market for longer

Property investment pros and cons

Young women trump men on home loans

A home not enough for retirement

Johannesburg - The year-on-year growth rate for house prices has started to decline, possibly due to the country's slowing economy, FNB said on Wednesday.

The FNB house price index showed a slight decline in its year-on-year growth rate in July, from a revised 8.4% in June to 8.3% in July.

"The start of a slowing year-on-year growth rate has been anticipated in recent months, due to the fact that the month-on-month seasonally-adjusted growth rate has been broadly losing steam since a January peak," the bank said.

It said the start of a loss of price growth momentum was believed to be the result of a slowing economic growth rate.

"After 3.2% quarter-on-quarter annualised gross domestic product (GDP) growth in the final quarter of 2011, the first quarter growth rate [for 2012] slowed to 2.7%, and certain high frequency economic indicators suggest a good possibility that the second quarter may have been an even slower growth quarter," FNB said.

It said a broad slowing of the year-on-year rate was again "the order of the day in the near term".

"Some may argue that the July interest rate cut will breathe some life into the residential market. It will indeed be a minor stimulus, and one may see a month or two's slight acceleration in month-on-month house price growth," the bank said.

"But beyond that, we don't think it will totally offset the negative impact of a slowing domestic economic growth rate, and with it a slowing wage bill growth rate."

FNB said it anticipated a year-on-year growth rate of around 5% or 6% by the end of the year.

* Follow Fin24 on Facebook, Twitter and Google+.

fnb  |  economy  |  house prices



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
1 comment
Add your comment
Comment 0 characters remaining

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:


Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.

Top 10 richest musicians of all time

Check out the gallery to find out who they are!


Luxury living

Seven of the most expensive children's toys ever made
5 millionaires turned murderers
The youngest billionaires in the world and how they made it
Watch: Flying first class has never been this luxurious!

Money Clinic

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

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote