FNB House price index showed house prices increasing for the 3rd month in a row with the average house price in January 3.1% higher than a year ago.
This is however still below the inflation rate of 6.3%. FNB expects the market to continue strengthening until mid-2010 with the full impact of last year’s interest rates still to feed through — however it will be a mild recovery. According to FNB the coastal holiday towns’ markets are lagging considerably in the recovery.