August house price growth slows
Nominal house price growth of 14.6% year-on-year was recorded in August in the middle segment of the market, according to the latest Absa House Price Index.

July’s middle-segment house price growth was at a revised 15.1% (14.5%).

This brings the average price of a house in the survey to 942,800 rand.

House price growth was at a higher 15% in June.

In the first half of 2007 average nominal house price growth of 15.5% was recorded compared with the same period a year ago, and the data showed that in the first eight months of the year average nominal house price growth came to 15.4% year-on-year.

Real year-on-year growth in house prices of 7.5% was registered in July compared with a growth rate of 7.7% in June, based on the headline consumer price index.

On a month-on-month basis, nominal house price growth slowed to 0.7% in August (0.8% in July). In real terms, house prices declined by 0.2% month-on-month in July after no change in real prices was recorded between May and June.

The Absa House Price Index growth in December 2006 was at just 13.5% and overall in 2006 it was at 15.3% from a whopping 22.7% in 2005.

The Absa House Price Index is based on the total purchase price of houses in the 80m²-400m² size category, valued at 2.7 million rand or less (including improvements), in respect of which loan applications were approved by Absa.

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