According to Lightstone, house price inflation has slowly been declining over the past 12 months.
House price inflation at the end of February 2016 was recorded at 5,2%, according to Lightstone’s latest House Price Index. As has been seen over the past six months, house price inflation has slowly been declining. Over the past 12 months this same decline was also seen in the high and luxury segments of the property market. The mid and lower segments however, showed signs of resilience amid tough economic conditions and increased over the same period.
This trend seems to have come to an end though as signs of the mid value segment's inflation peaking is becoming apparent which means the effects of the tough economic conditions have nearly filtered through the majority of the economy.
The latest house price inflation for the major provinces:
- Gauteng: 6,6%
- KZN: 4,7%
- Western Cape: 7%
- Eastern Cape: 6,6%
This article originally appeared in Neighbourhood, Sunday Times.