Nominal house-price growth slowed further in May this year to a level of 4,3% year-on-year, the lowest price growth since late 1999, Absa said on Thursday.
This was down from a revised 5,5% in April and brought the average price of a middle-segment house to about R960 700 in May.
However, in real terms, house prices in the middle segment of the market dropped by 5% year-on-year in April 2008, compared with a decline of 3,4% recorded in March, based on headline CPI inflation.
”This was the biggest real year-on-year drop recorded in house prices since March 1997, when it was at a level of -5,2% year-on-year, based on nominal price growth of 3,9% year-on-year, and a headline CPI inflation rate of 9,6% at the time,” Absa said.
On a month-on-month basis, revised nominal house-price growth was negative to the tune of 0,1% between March and May this year, which was the first nominal month-on-month price drop since January 1999.
As a result, the average nominal house price has declined by about R4 000 over the past three months, Absa said.
In real terms, house prices dropped by a further 1,9% in April from March.
The real price of a middle-segment house has dropped by a total of R37 200, or 5,7%, from an all-time high of about R651 600 in August last year to about R614 400 in April this year. — Sapa