Year-on-year growth in the average nominal value of homes in the various categories of middle-segment housing in the South African residential property market slowed down further across all categories of housing in May 2015.
Taking account of the effect of inflation, some real house price deflation was evident in each category of housing in April compared with a year ago.
In view of macroeconomic and household finance-related developments and expectations, nominal house price growth is forecast to average around 6% in 2015, down from 9,4% in 2014 and 10% in 2013. Against the background of consumer price inflation expected to rise to a level of above the upper limit of the inflation target range of 3%-6% in the last quarter of 2015 and in the first half of 2016, real house price growth is forecast to be under severe downward pressure in the coming twelve months, with a strong probability of prices deflating in real terms during this period.
Read more here: ABSA House Price Indices May 2015