Probably the most interesting observation in the latest FNB Property Barometer* is that a “potential bottoming out” of the residential market actually occurred about a year ago - between the second and third quarters of last year.
“Meanwhile, as FNB also notes, home values are on the rise, albeit at a glacial pace for now. The FNB House Price Index shows a national average yoy increase of 0,5% in June, for example, compared to a yoy increase of 0,3%.” “Interestingly, FNB notes that most of the latter are choosing not to rent but just to buy a smaller, less expensive home, and this is supporting the lower end of the market, despite a dramatic fall off in first-time buyer activity since the peaks of 2020 and 2021 when interest rates were slashed in response to the Covid-19 threat to the economy.”