Home values in the middle segment of South Africa's property market continued to rise in July, but at a slower pace than before. The South African bank Absa reports that the average nominal value of houses for which it approved mortgage financing rose by 11.9% year-on-year that month, less than the 13.7% and 13.2% y-o-y growth recorded in May and June respectively.
The y-o-y house price increase is expected to slow further for the remainder of the year. And providing no extra stimulus spurs the residential property market, interest rates are forecast to remain at current levels for the rest of the year and probably the first half of 2011.
Source: Absa Home Loans (.pdf)