House price growth set to slow further: ABSA
Based on the outlook for the global economy and domestic growth, inflation, interest rates and the consumer sector, house price growth is forecast to remain relatively low this year, while prices are set to decline further in real terms according Jacques du Toit, Absa Home Loans.
Du Toit said the South African economy had been forecast to post real growth of 2.8% in 2012, after expanding by an estimated 3% in real terms in 2011. The lower growth expected this year compared with last was against the background of global growth of only 3.3% projected for 2012, impacted by the prolonged sovereign debt crisis in Europe.
Headline consumer price inflation had been forecast to remain above the 6% level throughout 2012, driven by continued pressure on food prices, transport costs and property running costs. In view of these expectations, interest rates were forecast to remain at current levels until late this year before being hiked