The average value of houses in the middle segment of the market continued to rise annually in the month of February, the Absa House Price Index revealed on Monday.
Absa property analyst Jacques du Toit said the increase was largely as a result of the base effect of slowing house price growth, as well as price deflation in one segment of the market 12 months ago.
Prices for houses in the middle segment of the market increased by 10.2 percent year-on-year in February.
This followed a revised year-on-year rise of nine percent in January.
However, Du Toit said the monthly price growth was still declining and would most likely cause year-on-year price growth to moderate later this year.
Du Toit said in real terms, house prices were forecast to remain under pressure in view of consumer price inflation expected to rise to above six percent this year.
The average nominal value of homes in each of the three middle-segment categories was as follows in February 2013:
- Small houses (80 square-meter to 140 square-meter) stood at R776,700;
- Medium sized houses (141 square-meter to 220 square-meter) were priced at R1.07 million; and
Large homes (221 square-meter to 400 square-meter) were priced at R1.57 million.