Yearly growth in the average value of homes in the middle segment of the South African housing market continued to slow in November.

According to Absa’s latest house price index‚ the nominal yearly price growth slowed down further in all three categories of housing in November from October this year. The growth in small-sized houses within the segment decreased to 5.8% from 6% in October. In medium-sized houses the growth decreased from 3.1% in October to 2.1% in November and with large-sized houses the growth moderated to 7.7% from a previous 8.2% over the same period.

According to Absa‚ many households are still experiencing some financial strain‚ with inflation continuing to erode spending power. Growth in employment‚ real household disposable income and consumption expenditure remains low‚ while the savings ratio is not improving.

The survey is based on applications for mortgage finance received and approved by the bank.