Absa House Price Indices: Lowest house price growth in almost 9 years

Absa House Price Index expanded
This month sees the expansion of the Absa House Price Index, compiled and published for the first time back in May 2002. Traditionally the House Price Index focused on the entire middle segment of the residential property market (see explanatory notes), which comprises small houses (80m²-140m²), medium-sized houses (141m²-220m²) and large houses (221m²-400m²) up to R2,9 million.

Price indices with regard to each of the abovementioned categories of middlesegment housing at a national level will be published in future, including the weighted average price index for these three categories combined.

The latest trends in house prices
Nominal price growth in all three categories of housing in the middle segment of the market, as defined by Absa, slowed down further in July this year, whereas prices dropped in real terms (i.e. after adjustment for inflation). This was the result of deteriorating market conditions on the back of rising inflation and interest rates, adversely affecting household finances and the affordability of housing.

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