South African house prices increased by +2.4% in March compared to February 2010 as they showed growth of +8.6% year-on-year, according to the FNB House Price Index.

House prices had started to increase in August 2009 and have risen by +10.6% since then. They had previously declined by -20% between March 2008 and July 2009.

John Loos, FNB’s home loans strategist said: “From the bottom point of the 2008/9 price slump in June 2009, the cumulative nominal increase in the FNB House Price Index as at March amounts to +11.8%. Since the start of the index numbers back in July 2000, almost ten years ago, the cumulative increase to date is 197.9%.”

The average house price in the index was estimated at R779,546 (US$106,378).