Last May year on year South African house price deflation was at a staggering -15%.
For the first time, the FNB House Price Index shows a renewed year-on-year (y/y) house price inflation in November. The index rose year on year by 2%, after October’s -0,9%.
Time to buy. However with current real prime rate doesn’t allow yet for short-term property speculation. As FNB puts it: “Here, we adjust prime rate with house price inflation to get to real prime rate, and although this rate is declining steadily due to improving house price inflation, at 8,5% this real prime rate remains significant. No place for speculators on a large scale just yet it would seem.”
Speculators with a longer breathe and cash at hand will slowly consider to start their hunting though.
