Johannesburg - October 2012 saw the year-on-year growth in the average value of homes in the middle segment of the South African housing market improving further compared to September this year‚ the latest Absa House Price Index shows.
Month-on-month price growth‚ however‚ is still on a steady declining trend‚ pointing to eventual subdued year-on-year price growth.
The index‚ based on applications for mortgage finance received and approved by the bank in respect of small‚ medium-sized and large homes in the middle segment of the market‚ showed the average value of middle-segment homes increased by a nominal 2.6% y/y) in October this year‚ after rising by a revised 1.5% y/y in September.
The first ten months of the year saw house prices marginally down by 0.6% y/y‚ after significant price deflation evident in the small segment of the market for most of the year.
Real house price deflation continued up to September‚ with the momentum slowing down somewhat from August on the back of improved nominal price growth‚ but faster rising inflation.
The headline consumer price inflation rate accelerated to 5.5% y/y in September on the back of upward pressure coming from food prices and transport costs. Consumer price inflation averaged 5.7% in the first nine months of 2012 compared with the same period last year‚ Absa said.
The average nominal value of homes in each of the three middle-segment categories of the housing market was as follows in October 2012:
• Small homes (80m²-140m²): R749 800
• Medium-sized homes (141m²-220 m²): R1 042 900
• Large homes (221m²-400m²): R1 526 200