The average house price growth slowdown continues, with the November FNB House Price Index recording a year-on-year rate of increase of 3.8%. This is only slightly lower than the previous month's revised rate of 3.9%, reflecting a recent slowdown in the pace of decline in price growth in recent months. It is possible that the slowing pace of decline is reflective of some additional stimulus that the Reserve Bank (SARB) has given to the market through its interest rate cut in September, while the November rate cut would only be reflected in the numbers in coming months. The average price for November was R787 530.
In real terms, the decline in the rate of year-on-year increase continued in October, from 1.4% in the previous month to 0.5%, which was the combination of lower nominal house price growth as well as a slight rise in consumer price inflation from 3.2% in September to 3.4% in October.
Read the full Property Barometer House Price Index November 2010.
