Absa Home Loans has seen some nominal house price growth in June in the middle segment of the SA housing market, after some price deflation occurred in recent months.
Nominal price growth of just more than 1% was recorded on a year-on-year (y/y) basis in middle-segment housing in June this year, after prices were declining in the first five months compared with the corresponding period in 2010, Absa monthly house price data showed on Thursday.
Absa property analyst Jacques du Toit said base effects played a role in the month under review, as price growth was tapering off 12 months ago.
In real terms though, prices dropped by 4.4% y/y in May, based on a consumer price inflation rate of 4.6% y/y in the month.
The value of small houses was down by a nominal 6% y/y in June.
May saw a decline of 6.1% y/y after revision. The average price of a house in this category of the market was about 753,100 rand in June this year. In real terms the value of small houses dropped by 10.2% y/y in May.
In the category of medium-sized homes, the average price was up by a marginal 0.2% y/y in June after declining by a revised 0.3% y/y in May. In June the average price of a medium-sized house came to about 973,400 rand.
A real price decline of 4.7% y/y was recorded in the medium-sized category in May this year, unchanged from April.
The segment for large houses saw nominal price growth of around 1% y/y in both May and June this year, with the average price of a house in this category of the market coming to 1.4 million rand in June. In real terms prices in respect of large houses were down by 3.4% y/y in May.
Du Toit said in view of the trend in house prices in the first half of 2011, and the impact of base effects influencing year-on-year price calculations, nominal price growth of between 1% and 2% were forecast for the full year. - I-Net Bridge