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Johannesburg - The growth in house price increases in the middle segment flatlined in November compared to a year ago, data released by Absa bank on Tuesday show.
The value of middle-segment homes for which Absa approved mortgage finance registered no growth in November 2010 from 1% growth in October, it said.
In all three categories of housing measured by the Absa house price indices - small, medium-sized and large houses - price growth was lower in both nominal and real terms in November compared to a year ago, it said.
"The year-on-year growth in the value of homes for which Absa approved mortgage finance slowed down further in both nominal and real terms in November 2010," said Jacques du Toit, sectoral analyst at Absa Retail Bank.
Du Toit expected nominal price growth, where the effects of inflation are not taken into account, to average about 7% for the year.
Real price growth, which factors in the effects of inflation based on consumer price inflation, was forecast at around 2.5%.
Du Toit said given expected economic developments, nominal house price growth would be just below 5% for 2011.
"Based on forecasts for nominal price trends and consumer price inflation, prices are set to remain almost stable in real terms in 2011 compared with this year."
Absa's observations tally with those of the November FNB House Price Index released last week, which found that average house price growth slowed in November to a year-on-year rate of increase of 3.8%.
The value of middle-segment homes for which Absa approved mortgage finance registered no growth in November 2010 from 1% growth in October, it said.
In all three categories of housing measured by the Absa house price indices - small, medium-sized and large houses - price growth was lower in both nominal and real terms in November compared to a year ago, it said.
"The year-on-year growth in the value of homes for which Absa approved mortgage finance slowed down further in both nominal and real terms in November 2010," said Jacques du Toit, sectoral analyst at Absa Retail Bank.
Du Toit expected nominal price growth, where the effects of inflation are not taken into account, to average about 7% for the year.
Real price growth, which factors in the effects of inflation based on consumer price inflation, was forecast at around 2.5%.
Du Toit said given expected economic developments, nominal house price growth would be just below 5% for 2011.
"Based on forecasts for nominal price trends and consumer price inflation, prices are set to remain almost stable in real terms in 2011 compared with this year."
Absa's observations tally with those of the November FNB House Price Index released last week, which found that average house price growth slowed in November to a year-on-year rate of increase of 3.8%.
