Revised data from FNB suggests that house prices ‘troughed’ around June 2024 which aligns with improving sentiment and initial signs of market recovery.
The latest FNB Residential Property Barometer indicates a surge in market activity, particularly in Gauteng and the Western Cape, coupled with a reduction in the time it takes to sell a property.
However, a historical comparison of real house prices with the market strength indices suggests that current real house prices should be higher, which may indicate that while buyer interest has increased, market forces have not been sufficient to generate significant upward momentum in property values.
FNB anticipates house price growth to average around 0.8% this year, before climbing towards 1.7% in 2025 and more towards the 3% mark in 2026.
