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Cape Town - The year-on-year growth rate in the First National Bank (FNB) House Price Index for September has stalled on 5.6%.
"The latest results imply that, since the beginning of the big market 'correction', which we believe began after a real house price boom time peak in February 2008, house prices in real terms have declined cumulatively by minus 15.3% to August 2011," FNB economist John Loos said.
"However, since July 2000 when the index started, prices are still up 64.7% in real terms and 313.1% in nominal terms."
Loos said it was believed economic factors were beginning to play a role in constraining house price growth.
The interest rate cutting stimulus of late 2010 was wearing thin, with economic growth slowing in the second quarter and beginning to put pressure on real household disposable income growth, he said.
Much of the domestic economic growth slowdown, in turn, could be explained by global economic growth slowing.
Loos said there were no obvious major economic stimuli for the South African residential property market for the remainder of the year.
"The latest results imply that, since the beginning of the big market 'correction', which we believe began after a real house price boom time peak in February 2008, house prices in real terms have declined cumulatively by minus 15.3% to August 2011," FNB economist John Loos said.
"However, since July 2000 when the index started, prices are still up 64.7% in real terms and 313.1% in nominal terms."
Loos said it was believed economic factors were beginning to play a role in constraining house price growth.
The interest rate cutting stimulus of late 2010 was wearing thin, with economic growth slowing in the second quarter and beginning to put pressure on real household disposable income growth, he said.
Much of the domestic economic growth slowdown, in turn, could be explained by global economic growth slowing.
Loos said there were no obvious major economic stimuli for the South African residential property market for the remainder of the year.
