09 May.
Home values came under further pressure in April:
Home values in the small, medium-sized and large categories of housing in South Africa for which Absa approved mortgage finance (see explanatory notes), experienced some further strain in April 2011 on a year-on-year basis. However, some marginal nominal growth occurred on a monthly basis in April in each of the abovementioned segments. In the first four months of 2011, average nominal year-on-year price growth was still positive in the three categories of housing compared with a year ago. In real terms, home values dropped further in all three segments in March 2011 on the back of headline consumer price inflation rising to 4,1% year-on-year (y/y) in the month from 3,7% y/y in February. In the period January to March this year, real price declines occurred in the three categories compared with the corresponding period in 2010.
The segment for small houses (80m²-141m²) recorded a nominal year-on-year price drop of 3,5% in April 2011 (-1,2% in March). The average price of a small house came to about R766 300 in April. In real terms prices were down by 5,1% y/y in this segment of the market in March this year.
The average nominal value of medium-sized homes (141m²-220m²) declined by a marginal 0,1% y/y in April 2011, after rising by only 0,1% y/y in the preceding month. This brought the price of a medium-sized house to about R972 900 in April. A real price decline of 3,9% y/y occurred in this category of housing in March 2011. In the category of large houses (221m²-400m²) nominal year-on-year price growth slowed down to 2% in April from 2,5% in March. The average price of a large house was recorded at around R1 489 700 in April. March this year saw an average real price decline of 1,8% y/y in the large segment.
Read more at Absa Property Research
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