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Johannesburg - House price growth rates for June rose 7.8% year-on-year, First National Bank said on Tuesday.
"While the solid performance of the housing market continues, average price growth remains off levels seen early in 2014," the bank's household and property sector strategist John Loos said in a statement.
"According to the FNB house price index, the average house price for June 2014 rose 7.8% year-on-year. This is unchanged from the previous month's revised 7.8%."
It was also slower than the 8.5% growth recorded at the start of 2014.
Real house price growth, when house prices are adjusted for consumer price inflation (CPI), came in at 1.07% year-on-year in May.
This was a slight slowing from the revised 1.58% real price growth seen in April, due partly to the pace of CPI inflation having quickened slightly in April, from 6.1% to 6.6% in May.
"The average price of homes transacted was R960 570."
In real terms, the index for May was 18.9% down from December 2007, the month where the boom time peak in real house prices was reached.
"In nominal terms, house prices by June 2014 were 21.3% higher than December 2007," Loos said.
It was expected that house price growth would taper off closer to 6% by the end of the year.
This was because growth in residential demand was being weakened by slow disposable income growth and slowly rising interest rates.
