Research

Is the housing market telling us something?

Is early-2015 promise of an economic boost from lower oil prices going to come to nothing? Or is it still coming?

At 6.0% year-on-year growth in February, which translates into positive growth in real terms (when adjusted for CPI inflation), the FNB House Price Index remains in a “solid” space. However, the pace of improvement continues to slow, and this may be saying something about our economy. While we have expected some economic boost from sharply lower oil prices in recent times, the reality is that the South African economy has a myriad of structural constraints, too, not to mention that the prices of SA’s export commodities have also weakened, so it’s not only about oil. Does the slowing pace of growth in FNB’s key housing market indicators say something about the state of the economy? Or is more positive economic stimulus from low oil prices still to come with a lag? Read more here – FNB Property Barometer_February_2015 House Price Index