Year-on-year growth in the average nominal value of homes in the middle segment of the South African housing market continued its slowing trend to a level of around 5% in October 2015. Month-on-month price growth dropped to 0,2% in October, which contributed to declining year-on-year price growth in the first ten months of the year.
Nominal house price growth of around 6% is forecast for this year and next year, with the risk to the downside. Based on the outlook for nominal price growth and consumer price inflation, real house price growth is expected to remain relatively low over the next 12 months.
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Regards
Jacques du Toit │ Property Analyst │ Absa Home Loans