The FNB Property Barometer survey’s results were released today and it shows a very small increase in the 4th quarter of 2009, on a quarter-to-quarter basis.

Although the barometer reading only increased from 5.65 to 5.68, the increase is nevertheless still positive, particularly in light of the fact that it is also an increase, year-on-year, from the 4th quarter in 2008.

The survey question relates to the level of demand activity, and agents are asked to rate the level of demand that they experience on a scale of 1 to 10.

The improvement has been tempered with caution as a result of the slow economy, the average price/average income ratio has improved and the cost of servicing debt has also declined. Cautionary buyers are now concerned with the costs of running a household and this includes factors such as the proposed hikes in electricity prices and probably rises in municipal rates and expenses.

Reported by Business Day