Housing market stabilises

THE housing market might be starting to stabilise, FNB said yesterday when it released its latest House Price Index.

THE housing market might be starting to stabilise, FNB said yesterday when it released its latest House Price Index.

The year-on-year decline continued in August, but for the second successive month there was a diminishing price deflation rate.

On a year-on-year basis, the index declined by -7,4percent in August, "a significant improvement on the revised -8,5percent deflation rate for July," said John Loos, property strategist at FNB.

The improving trend comes some time after estate agents began reporting strengthening demand levels in the fourth quarter of last year.

Meanwhile Standard Bank said that house price growth was likely to improve towards the end of the year as the effect of interest rate cuts impacts the economy and property market. - Adele Shevel

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