select
|

August stats show slower property price growth and rising demand for 100% bonds

Statistics released by ooba, South Africa’s largest bond originator, reflect positive growth in housing prices but at a significantly slower year-on-year growth rate.
 
The Average Purchase Price in August 2015 increased by 3.4% from R982,297 in August 2014 to R1,015,766. This low single-digit growth is a marked slowdown from the double-digit growth of 11% recorded in the second quarter of 2015.
 
Rhys Dyer, ooba CEO says, “This slowdown in housing prices is not surprising given that consumer confidence is at its lowest level in 15 years. This reflects concerns about South Africa’s future, particularly given worse-than-expected Q2 GDP figures, poor economic growth forecasts for the remainder of 2015 and rising interest rates. Self-employed applicants fell to 9% of ooba’s applications received in August, compared to 11% in Q2 2015, reflecting lower business confidence levels.”
 
The impact of economic concerns is also evident in the First-time Buyer’s market, which showed only a 0.9% year-on-year increase in the Average Purchase Price to R761,240. However, activity in the first-time buyer’s market has remained consistent with more than 53% of ooba’s applications in August coming from this segment.
 
ooba’s statistics also show that 52% of all home buyers applying for home loan finance in August indicated that they had no access to a deposit, which represents a 4% year-on-year increase in demand for 100% bonds. “This is further evidence of the financial constraints which South African consumers are facing,” says Dyer.
 
Dyer points out: “The slowdown in housing prices coupled with the still positive lending environment could signal a good time to buy property. Our statistics show that our bond approval rate in August was 3.5% higher and we recorded further improvement in pricing from banks.”
 
With South Africans facing increasing financial strain, Dyer recommends that home buyers use the services of a bond originator like ooba for prequalification before they are ready to make an offer on a home. “Our free prequalification service incorporates a credit check and affordability rating so that when you make an offer, you can be confident that the banks will approve your bond. This enables prospective buyers to focus on finding their dream home, while we find the money”, concludes Dyer.




  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 22 Jun 2018
      The rental market in many Johannesburg suburbs has shown encouraging signs of revival this year but it remains a competitive market and landlords who best cater to their market’s needs will reap the healthiest returns.
    • 22 Jun 2018
      Home design is constantly evolving to reflect the changing needs of society. We look at some of the ways in which our use of space is changing.
    • 22 Jun 2018
      While estate agents can help the seller with correctly pricing the property and marketing a property to the right pool of potential buyers, at the end of the day it’s the impression that the property will make on buyers that counts the most.
    • 21 Jun 2018
      Anyone who’s ever been involved in a building project that’s gone wrong will appreciate the importance of adequate insurance cover in the construction industry.
    • 21 Jun 2018
      A recent news story about a blind tenant caught in a legal battle with his body corporate over letters and notices he was unable to read and consequently comply with has raised the question: what are the legal obligations for landlords with disabled tenants?
    • 21 Jun 2018
      A trend that’s taken the world by storm in recent years is that of hygge (pronounced: hue-guh), a Danish concept that is about creating intimacy, connecting with loved ones and taking pleasure in small, ordinary things.
    • 20 Jun 2018
      Buying or selling real estate isn’t as easy as it is portrayed sometimes, especially if there is a death of a party during the transaction which can make it awkward, tricky and inconvenient.
    • 20 Jun 2018
      With interest rates remaining at historic lows and banks continuing to compete for mortgage finance business, first-time buyers with funds at their disposal are currently well-placed to gain that initial foothold on the property ladder, particularly in the light of the slightly lower growth rates currently experienced in residential property values.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK