House price deflation predicted
"With headline consumer price inflation projected to average around 5.5% in 2013, some real house price deflation may still occur for most of next year"
ABSA has predicted relatively low nominal house price growth for the next year.
"Relatively, low nominal house price growth is forecast for the next 12 months, and with headline consumer price inflation projected to average around 5.5% in 2013, some real house price deflation may still occur for most of next year," the banking and financial services group said yesterday.
Absa said year-on-year growth in the average value of homes in the middle segment of the housing market increased in November this year, but that month-on-month price growth continued its downward trend.
This was expected to affect year-on-year price growth in the near future.
Middle-segment home values showed a nominal rise of 5% year-on-year last month, after increasing by a revised 3.3% year-on-year in September.
In the first 11 months of 2012, house prices were unchanged compared with the corresponding period last year, and were largely affected by price deflation in the small segment of the market up until August.
Bond originator ooba said even though conditions were tough in November, it reported record performance for the month.
"The value of home loans approved through ooba in November is up 30% on November 2011, whilst October was up 47% on the prior year," the company said.