House prices in settling phase
Johannesburg - House prices are expected to consolidate at their current, elevated levels, which should still imply a reasonable average growth for the year, albeit sharply lower than before, Standard Bank (SBK) said on Tuesday.
It said the slowdown in the housing market was now clearly entrenched, with a persistent deceleration in the growth of house prices.
In July, house price growth continued its downward trend, from 6.5% in June to 6.0% y/y - the lowest since December 2002. The five-month moving average growth rate decelerated to 10.2% y/y from 12.4% y/y in June, the bank said.
"The softening in the housing market corroborates the slowdown in consumer activity reflected in other indicators such as retail and car sales, which is expected to be aggravated by the moderately upward trend in interest rates," it added.
News source: www.news24.co.za
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