House prices are not growing in line with inflation, according to Absa's latest property price indices released on Monday.
"The average real price [at constant 2008 prices] of houses in the middle-segment of the market was in September this year about 13% below its peak of mid-2007," Absa Home Loans property analyst Jacques du Toit said in a statement.
"This was the result of average nominal house price growth being below the average headline consumer price inflation rate during this period."
In nominal growth, the effects of inflation are not taken into account, while real prices factor in the effect of inflation.
08 November 2011
ABSA: House Prices Growth Lagging Behind Inflation
Houses hurting as inflation outpaces property prices