The FNB House Price Index for March 2013 showed further slowing in its year-on-year inflation rate, from a revised 2.9% in February to 2.2%. This continues a mild slowing growth trend from a “mini-peak” of 7.7% growth reached in July 2012.
A relatively solid period of house price growth in the 1st half of last year created a high base off which current year-on-year growth comes, and it is this high and rising base effect which is a key contributor to low and slowing year-on-year growth in the early stages of 2013.
The average value of homes transacted in the FNB House Price Index was R850,036 in March.
This slowing year-on-year house price growth does not yet reflect what appear to be some signs from other FNB indicators of growing residential market strength. Examining the house price data on a quarterly basis, the 1st quarter year-on-year growth rate was 3%, and this was slower than the 5.8% of the final quarter of 2012. However, the 1st quarter of 2013 did perhaps start to show early signs of price growth strengthening when examined on a quarter on quarter basis, …
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