PROPERTY SECTOR
House price growth resumes downward trend from 2015
Economists downgrade house price growth forecasts to no more than 3% for 2017
Housing activity has come under pressure in recent months, prompting economists to downgrade their house price growth forecasts to no more than 3% for 2017. Prices rosey an average 5% in 2016, as recorded by FNB and Absa’s housing indices. FNB household and property sector strategist John Loos said last week that housing demand had seeming to slow over the past two quarters, with the FNB Residential Activity Indicator at its lowest level since the second quarter of 2009. That was the last time SA experienced a technical recession following three quarters of negative GDP growth. The FNB index recently resumed a broad multiyear declining trend that started early in 2015, after a brief two-quarter strengthening in the summer of 2016-17. Loos said the declining trend should not come as a surprise given low levels of consumer and business confidence. "The lack of positive economic policy announcements at a time when the spectre of further sovereign ratings downgrades lingers and social t...
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