THERE will be no rapid turnaround for the housing market, Standard Bank said yesterday in its latest residential property report.

THERE will be no rapid turnaround for the housing market, Standard Bank said yesterday in its latest residential property report.

This was in spite of the economy emerging from recession in the third quarter of 2009 and showing above-expectations growth in the fourth quarter of 2009.

Standard Bank's property book for February 2010 showed that the rate of decline in the median house price continued to slow down.

The smoothed data yielded a rate of contraction of 1,9percent year-on-year, following a decline of 2,9percent year-on-year in January 2010.

The smoothed growth rate for last month showed that the value of the median residential properties financed by Standard Bank was R550000, marginally up from January's R545000.

"The decline in real house prices comes to about 8,4percent year-on-year from 9,3percent year-on-year in January," Standard Bank said.

It added that the nature of the recovery in economic activity and the lack of demand in the early phases of the upswing meant that the property market could possibly be one of the last sectors to improve in 2010.

Standard Bank said the electricity tariff increases, their second round effects and possible increases in other administered prices such as municipal rates and taxes were not good news. - Sapa