This is slightly slower than a revised 8.1 per cent for March.
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“For the last three or four months there has been tapering slightly but still between the region of eight per cent and nine per cent. This is showing that a peek is forming but I don’t think it will get better than this,” John Loos, FNB’s household and property sector strategist told CNBC Africa.
“I would be worried if I saw a double digit growth in the housing market because we just don’t have strong economic fundamentals at the moment. A lot of monthly indicators are pointing toward a flat economy.”
Loos added that in a rational market price growth go slower or stay mediocre in single digits because that would reflect the state of the economy and its fundamentals over the past few years.
Real house price growth came in at 1.93 per cent year-on-year in March.
“This represents a slight slowing from a revised 2.3 per cent real price growth in February, due in part to the pace of Consumer Price Index inflation having quickened a little in March, from 5.9 per cent in February to 6 per cent, along with slightly slower house price growth from the previous month,” Loos noted.
The average price of homes transacted was 954,443 rand.
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“In nominal terms, the April 2014 average price was 114.5 per cent higher than the April 2004 price level, but only 20.5 per cent above the December 2007 level.”
From a revised level of 49.1 in March, the FNB Valuers’ Market Strength Index rose further to 49.2 in April.
“This rise was due to a further increase in the Valuers’ Demand Rating. However, the Valuers’ Residential Supply Rating did not contribute positively, rising slightly (negative from a market balance point of view) month-on-month for the 1st month since December 2012.”
BY TRUST MATSILELE