Prices better in long haul

DESPITE a “mediocre” performance in recent years, FNB’s John Loos says the average real price currently remains 63.9% above the end2000 level, about 16.5 years ago. This was also just before boom-time price inflation started to accelerate rapidly.

In nominal terms, when not adjusting for CPI inflation, he says the average house price in September 2017 was 318.0% above the end-2000 level. By comparison, consumer goods and services prices, as measured by the CPI, were only 154.7% higher.