The South African housing prices are performing at rather poor levels. But a slight rise was seen in five successive months till the month of November in which the prices were still better compared to the previous months - from FNB.
The average house price according to the FNBs transaction was R907 182 and the FNB house price index was on margin of 7.2% in November and 7.1% in October.
According to John Loos, the household and sector strategist “Though the difference level was seen decreasing and the November pricing were at quite good level than the previous months, the growth speed of the housing prices is seen losing its grip.”
Further adding he said that “Since past few months some compulsions are seen in the residential stocks and the number of buildings constructed are also going down. Few other factors such as the weak economic growth in the third quarter, poor confidence level in the consumers and other property statistics related to the growth are insisting us to think whether a better price growth can be expected in the upcoming year or not.”
However the same price growth of 6.5% calculated for 2013 can be predicted for 2014 - says FNB.
