Absa house price indices
The average value of homes in the South African residential property market for which Absa received and approved applications for mortgage finance, is deflating. This is based on the bank's house price indices for the small, medium-sized, and large categories in the middle segment of the market.
The latest trends in house prices are believed to be a reflection of macroeconomic developments and property-related factors such as running costs, impacting household finances. These factors may affect the demand for housing and cause changes in property buying trends, which will impact market activity, price trends in the various segments of the market, and the demand for mortgage finance.
If recent trends in house prices are to continue, nominal and real price deflation for the year as a whole is a strong possibility. This will imply another year of dismal price performance by the housing market.
