Macroeconomic trends, impacting the household sector, are weighing on the South African housing market, with year-on-year growth in the average nominal value of middle-segment homes slowing down further in June 2016.
On a month-on-month basis, nominal price growth has been on a declining trend over the past six months, coming to almost zero in June. In real terms, i.e. after adjustment for the effect of consumer price inflation, some house price deflation was recorded on a year-on-year and month-on-month basis during the first five months of the year.
Based on macroeconomic and household sector trends and prospects, nominal house price growth is forecast at between 4% and 4,5% for the full year, with some real price deflation of between 2% and 2,5% expected this year.
Read more here: Absa House Price Indices June 2016
