Absa Housing Review - 4th quarter 2008

Some of the findings and expectations are as follows:

• On a quarterly as well as an annual basis, nominal house price growth was lower in the small, medium and large categories of housing at provincial and metropolitan level in the third quarter of 2008, with prices actually declining in some areas. Calculating these price movements in real terms, the slowdown in the housing market is even more significant.
• In view of current and expected domestic economic conditions towards end-2008 and into 2009, the housing market is forecast to stay subdued over the next 12 months. Levels of activity and price growth across all segments of the market and in most geographical regions are projected to remain under pressure well into 2009.
• Nominal house price growth of 3%-4% is forecast for 2008-2009, while prices are set to decline in real terms this year and next year.

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