The housing market will start recovering gradually in the second half of this year, showing some noticeable growth in 2010, Absa's latest House Price Index released on Wednesday showed.

The market was expected to remain under pressure in 2009, with house prices forecast to drop by a nominal 2,5% and a real 8%, said Absa economist Jacques du Toit.

The January House Price Index showed that in nominal terms prices were virtually constant from a year ago, while prices continued to decline in real terms up to the end of last year.

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