FNB said that in recent times, the incidence of re-sales price deflation has been moderate by historic standards, and has shown no meaningful sign of an increase.<\/p>\n Over the last decade-and-a-half, August 2009 was the month where the highest estimated percentage of total properties were being resold at below their previous purchase price since a previous high early in1999, i.e. 23.4% of all property sales registered in that month.<\/p>\n “The country had just lived through a recession, and interest rates had peaked in mid-2008, and this was the lagged impact of those economic events on the housing market. It was a period of widespread financial stress amongst households, and many had previously bought homes at astronomical highs around 2006\/7 at the back end of the property bubble,” said household and property sector strategist at FNB, John Loos.<\/p>\n By comparison, in April 2017 this percentage was a far lower 9.8% of total home sales being below previous purchase price. 7.5% of re-sales were more than 5% below, while 2.2% of sales were 0 to 5% below previous purchase price.<\/p>\n These most recent estimates represent no noticeable increase from lowly levels of 2016, with only the August 2016 estimate of 9.4% being lower than the April 2017 estimate in the past 8-and-a-half years, the analyst said.<\/p>\n The FNB forecast is for real economic growth to be only marginally better at 0.7% in 2017, compared to 0.3% in 2016.<\/p>\n “We don\u2019t expect this to have a material positive impact on the housing market despite apparent mild first quarter improvement. And the recent slowing in month-on-month house price growth accompanied by a PMI dip convinces us to maintain our lowly 3% average house price growth forecast for 2017 as a whole,” Loos said.<\/p>\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/06\/InflationHouseprice.png\")
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