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| Lower House Price Growth Recorded in June |
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Property Trends - House Price Index
This brought the average price of a house to about R924 800 in June. Nominal price growth was 15,4% year-on-year in May. In the first half of 2007 average nominal house price growth of 15,5% was recorded compared with the same period last year.
Real year-on-year growth in house prices of 7,9% was registered in May (the lowest growth since February 2003 when it was also 7,9%) compared with a revised growth rate of 8,1% in April, based on the headline consumer price index. In the first five months of 2007, real growth in house prices averaged 8,7% year-on-year.
On a month-on-month basis, nominal house price growth slowed further to 0,6% in June (0,8% in May), which was the slowest nominal month-on-month growth recorded since September 1999 when it was 0,4%. In real terms, house prices increased by 0,2% monthon-
month in May. Against the background of the full implementation of National Credit Act (NCA) in June and the possible impact this could have had on house price growth in the past month, it is probably too early to make a definite conclusion that the NCA resulted in the growth rate slowing down further. The possible full effect of the NCA on the growth in house prices may only become visible in a couple of months’ time.
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