In April 2017, the FNB House Price Index showed some further acceleration in year-on-year growth compared with the March rate, after having gone through a “dip” late in 2016.

This remains in line with recent signals of renewed strengthening in the economy. The key risk, however, remains how recent policy developments, including a major cabinet reshuffle and subsequent ratings downgrades, play out on sentiment within the Household Sector and thus the housing market. However, at this stage it is too early to tell from the April house price data.

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