The average price growth in middle-segment housing was markedly higher in April 2010 compared with March 2010 as the country eased out of recession, Absa says

The finding was based on housing for which Absa approved mortgage finance.

The weighted average price growth of housing came to 13.5 percent year-on-year in April, up from a revised 11.8 percent year-on-year in March, Absa said.

In real terms - after adjustment for the effect of inflation - home values in the middle segment were up by 6.4 percent year-on-year in March from 3.9 percent year-on-year in February.

"Base effects have contributed to these growth trends as house prices were declining on a year-on-year basis in small, medium and large housing 12 months ago," Jacques du Toit, senior property analyst, said.

The housing market was set to recover further in the rest of the year, "driven by an expected improved economic performance, the effect of stable but low interest rates, and less tight conditions with regard to credit extension".

However, as a result of base effects, year-on-year house price growth might slow down in the second half of the year from current levels, he said.