{"id":120187,"date":"2016-04-17T19:00:18","date_gmt":"2016-04-17T17:00:18","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=120187"},"modified":"2022-09-07T09:25:24","modified_gmt":"2022-09-07T07:25:24","slug":"average-house-prices-in-south-africa-1995-2015","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/trending\/120187\/average-house-prices-in-south-africa-1995-2015\/","title":{"rendered":"Average house prices in South Africa: 1995 – 2015"},"content":{"rendered":"

The first three months of 2016 saw growth in the average value of middle-segment homes in the South African residential property market remaining relatively stable at a nominal 5.7% year-on-year.<\/p>\n

This is according to the latest data by Absa, which said that low economic and employment growth, rising inflation and higher interest rates are negatively affecting household finances and consumer confidence.<\/p>\n

Economic growth is projected at only 0.6% this year, from 1.3% in 2015, with headline consumer price inflation forecast to average short of 7%, up from 4.6% in 2015.<\/p>\n

Prime lending and variable mortgage interest rates, currently 10.5% per annum, are expected to rise further to a level of 11% by year-end.<\/p>\n

These factors are set to impact the property market in various ways, such as diverging demand and supply conditions, changing buying patterns, pressure on market activity and transaction volumes, Absa said.<\/p>\n

Looking at the remainder of 2016, the lending firm said that nominal house price growth is forecast to slow down from 6.2% last year to a level of between 4,5% and 5%, with the risk for price growth to be even lower.<\/p>\n

Based on the forecasts for nominal house price growth and the headline consumer price inflation rate, real price deflation of around 2% is projected for 2016, it said.<\/p>\n

According to Absa, the average nominal value of homes in each of the middle-segment categories was as follows in March 2016:<\/p>\n