House prices in October grew at the slowest rate in more than six years, according to the Absa House Price Index (HPI) and the lows are expected to continue.
Last month, nominal house price growth of 12,7% year-on-year was recorded. This is the lowest growth since January 2000, when it was 11,8%.
In real terms, year-on-year growth of 7,8% was recorded in September compared with a revised growth rate of 8,1% in August, based on the headline consumer price index.
The average nominal house price growth for the first ten months of the year came to 14,7% and the bank forecasts a growth rate of 14% for the year.
Next year, it projects house price growth of around 6%. The bank noted that for the first time in seven years, prices are expected to decline by almost 2% in real terms.
08 November 2006
Real decline in house prices
Real decline in house prices
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What I would like to see is the monthly price changes in different price brackets. If a house in Mitchels Plain goes from 100,000 to 150,000 that doesn't mean that a home in Camps Bay will go from 6m to 9 m.
Give me the price movements of the homes in the R1m to R3m range and that will give me a better picture of what's really going on in the middle class housing market. My suspicion is that this market is already in negative figures. Anyone know if these figures are out there ?
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