House prices in the Northern Cape are reflecting robust growth as the demand for residential accommodation outstrips supply.

In January 2018, the FNB House Price Index showed a slowing in year-on-year growth compared with the revised December 2017 rate.

The value of outstanding credit balances in the South African household sector increased by 3,8% to R1 542,8 billion in 2017, up from a low of 0,7% in 2016.

House price growth across all three residential categories are in single digits in 2013, according to Absa's house price index.

Year-on-year growth in the average value of homes in some categories of housing in the middle segment of the South African residential property market appears to have reached an upper turning point.

December 2012 saw year-on-year growth in the average value of homes in the middle segment of the South African housing market rising further.

The FNB House Price Index showed a further acceleration in June, in year-on-year growth terms, from a revised 8.6% rate in May to 8.9% in June. This is the highest year-on-year growth since June 2010. However month-on-month growth appears to be slowing as reflected in the accompanying graph further below

Nominal house price growth of 15.4% year-on-year (y/y) was recorded in February from a revised 15.4% in January, according to the latest Absa House Price Index. This brings the average price of a house in the survey to 891,700 rand in February 2007.However, the researchers pointed to growth potentially levelling off again later in the year.

House price growth is expected to continue the downward trend this year to 9% before improving again next year