There are clear signs that the housing market is over the hump and starting to stabilise though economic growth indicators remained very weak despite some improvement.

This is evident from a report issued by First National Bank that showed that the rate of decline in house prices diminished for the second consecutive month.

John Loos, a FNB Home Loans strategist, said the bank’s latest house price index declined by 7.4% year-on-year last month, which was an improvement on the revised 8.5% deflation rate for July.

'Given the high levels of indebtedness both in South Africa and the US, the expectation remains that the economic and property recovery over the next year or so will be moderate at best.'

Business Report (SA)