select
|

Statistics signal slower house price growth forecast for 2016

Property statistics for January 2016 released by ooba, South Africa’s largest bond originator, show milder year-on-year growth in house prices, including first-time buyer house prices with slower month-on-month growth trends emerging. 

The Average Purchase price increased by 6.4% year-on-year to R1,054,357. The Average Purchase Price for First-time buyers showed a smaller increase of 3.2% to reach R800,442. 

Rhys Dyer, ooba’s CEO, says: “Average bond values are higher, which goes hand-in-hand with reduced deposit sizes. The Average Deposit fell by 17.1% year on year, while deposits from first-time buyers shrank by 25.4% year-on-year. Increased bond sizes and decreased deposit sizes show that lenders are still competing for market share in the home loan finance sector.”

However, Dyer cautioned that the property and home loan environments appear to be less buoyant going into 2016. Bank approval rates are only marginally up year-on-year, while month-on-month bank approval rates have declined.  In the same way, average interest rates also improved year-on-year but deteriorated slightly month-on-month.

On the upside, Dyer says: “As long as first-time buyers continue to drive the property market, the ongoing shortage of housing stock will ensure that house prices continue to grow in 2016, albeit at a slower rate. In January, First-time buyers made up 54% of the applications received by ooba.

“The effect of the recent interest rate hike is not yet evidenced in ooba’s January statistics. Considering the tougher interest rate environment, poor economic growth forecast and the rising cost of living expenses we believe that housing affordability is going to be the greatest challenge for the residential property market in 2016,” adds Dyer.

“ooba’s home loan approval rate of 73% in January indicates that the company continues to secure approval for more than seven out of ten home loans that it processes,” says Dyer. 

Given the increasingly complex home loan environment, first- time buyers and all buyers alike can benefit enormously from being prequalified for finance before putting in an offer on a property. “ooba’s free  prequalification service provides buyers with a network of highly skilled prequalification experts located around the country who will assist buyers to access their credit report, assess their credit standing, calculate their affordability, compile the relevant paperwork and, within 24 hours, provide them with a prequalified loan certificate. This enables prospective home buyers to focus on finding their dream home, while we find them the money.” concludes Dyer.




  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 23 May 2018
      The importance of correctly pricing a property for sale is more imperative than ever. This is according to Debbie Justus-Ferns, divisional manager of Renprop Residential Sales, who says that despite this crucial selling fact being emphasised so often, in the current market, many sellers are still expecting unrealistic prices for their homes which is having a negative impact on the ultimate sale price.
    • 22 May 2018
      Extreme weather appears to be the new normal, evident by the volume of insurance-related disputes reaching the industry watchdog’s desk. To avoid a situation in which your insurer refuses to pay up, you should proactively ensure that your home is well-maintained and ready for whatever winter has in store.
    • 22 May 2018
      As the impact of technology on the real estate industry becomes more significant, it is clear that there is a need for an objective look at not only traditional real estate models but also online and other alternative low-commission real estate agencies, to examine what they offer and what their impact might be.
    • 22 May 2018
      According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, dealing with some sort of neighbour dispute is an unavoidable part of life unless, perhaps, you choose to live on a remote small holding for the rest of your life.
    • 22 May 2018
      Buyers feel that they are getting value for money in the Northcliff area without having to compromise on aesthetics and amenities
    • 21 May 2018
      Secure living is one of the growing property trends in South Africa and Nooitgedacht Estate in Stellenbosch certainly ticks the right boxes for buyers who want a secure, exclusive lifestyle in one of the Boland’s most sought-after estates, says Pam Golding Properties.
    • 21 May 2018
      With sectional titles growing in popularity, an increasing amount of homeowners simply do not have the garden space to install a tool shed in their backyard.
    • 18 May 2018
      Home improvements are a great way to add value to your property, but not all of us have bottomless pockets for a full-on renovation. Lucky for us, there are plenty of affordable DIYs that can spruce things up over a free weekend.
        
    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