August 2016 saw year-on-year growth in the average nominal value of middle-segment homes in the South African housing market slowing down further to its lowest level in almost four years. Monthly nominal price growth came to a virtual standstill in August, after being on a declining trend during the course of the year. In real terms, i.e. after adjustment for the effect of consumer price inflation, house prices contracted unabatedly on a year-on-year and month-on-month basis in the first seven months of the year.
Against the background of macroeconomic and household sector-related trends and prospects, nominal house price growth is forecast to remain under downward pressure in the rest of the year and into 2017, with prices expected to drop further in real terms over the next twelve months.
Read more here: ABSA House Price Indices August 2016