Dear Business Partner
Please find attached the latest edition of the FNB Residential Property Barometer report.
- We expect that interest rates have reached their peak, with a measured cutting cycle coming into view in the latter half of 2024. However, the short-term prospects for this forecast carry an upside risk, particularly if upward pressure on food and fuel prices intensifies, and government fiscal position deteriorates.
- In line with deteriorating affordability, buying activity continues to decline across the spectrum, with volumes now at pre-pandemic levels. Our indicators suggest widespread downscaling in the market, supporting buying activity in lower-priced brackets.
- Similarly, the declining trend in vacancy rates in the rental market may be stalling. Incoming data suggests that vacancy rates remain above pre-pandemic levels, reflecting an incomplete recovery.
Full report attached.
FNB Economics, Wealth and Investments