House price growth slowed to 0.3% year-on-year for January 2017, according to the FNB House Price Index. This is down from a 1% revised rate in December 2016 and represents the ninth consecutive month of slowing year-on-year house price growth, from an April 2016 high of 6.9%.
“In real terms, when adjusted for consumer price inflation, the index recorded a year-on-year decline in December 2016 of -5.4%, (January CPI data not yet available),” said John Loos, FNB’s household and property sector strategist. “In December, CPI inflation measured 6.8%, while revised house price inflation was a lowly 1%.”
The average house transaction price in January 2017 was R1,049,038 and the average time on market has risen to 15 weeks (Q3 2016) – from 11 weeks in Q1 2016.