South Africa - FNB
House price and market volume growth have begun to slow again after an early-2018 “mini-surge”
On a year-on-year basis, the FNB House Price Index’s growth rate has recently begun to slow once more. From a revised 3.9% rate for July, growth slowed to 3.5% in August 2018. This is the 2nd consecutive month of slowing yearon-year growth with the latest revised figures, off a 2018 high point of 4.1% reached in June.
While price growth is still mildly positive in nominal terms, it remains negative in “real” terms, when adjusting for CPI (Consumer Price Index) inflation. This means that the gradual housing market price “correction” continues in the form of a slow real price decline that has been in play since early-2016. As at July 2018 (August CPI not yet available) real house prices declined year-on-year by -1.2%, with CPI inflation at 5.1% in that month and house price growth at 3.9%.
The most recent slowing in year-on-year house price growth has been expected in recent months due to a prior commencement of slowdown in the month-on-month rate. To better evaluate recent house price growth momentum, we examine month-on-month house price growth on a seasonally-adjusted basis. Month-on-month growth direction leads year-on-year growth direction, and here we have seen 4 consecutive months of month-onmonth house price growth slowdown. From a high of 0.67% month-on-month growth in April, this rate has slowed to 0.08% as at August 2018.
FNB Property Barometer August
Purchase while pessimism rules
South Africa - Property360
South Africa's dismal economic performance is nothing to celebrate, but for buyers with cash on hand, the situation could present good opportunities.
In addition, figures released by StatsSA last week reveal that the construction and real estate sectors are among the best performing, says Berry Everitt, chief executive of the Chas Everitt International Property Group.
He says, for this reason, buyers should “ignore the current negative sentiment” about the country’s economic future and purchase more property “as soon as they can”. “The real estate market is currently described as a ‘buyers’ market’ because sales are slower overall and prices are static or only growing very slowly in most areas.
Why embracing technology is the key to longevity
UK - Legal Futures
In July, the Lord Chancellor, David Gauke, announced the creation of a panel of industry experts to support and accelerate the development and adoption of innovative legal technologies. Similarly, Stephen Ward, director of strategy and external relations at the Council for Licensed Conveyancers, has also written recently about how much the market needs disruptors.
This suggests to me that there is now more acceptance that, whilst various industries have flourished under the possibilities that technology brings, others have taken longer to adopt – such as the legal market.