According to FNB’s housing market data, the general picture continues to be one of a market whose pace of growth/improvement appears to have been gradually slowing down. The term “slowing pace of improvement” should not be confused with a “deteriorating market”. It is not yet the latter.
The solid performance of the housing market continues, with a good balance between demand and supply, but this pace of growth appears to have been slowing down in recent months.
According to the FNB House Price Index, the average house price for August 2014 rose 5.4% year-on-year. This is slower than the previous month’s revised 6.4%, and represents the 7th consecutive month of gradually slowing since the 8.6% year-on-year inflation rate recorded in January 2014.