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 Nov 2017
      Reserve Bank Governor, Lesetja Kganyago, said that the Monetary Policy Committee had once again decided to let the interest rates remain unchanged with the repo rate at 6.75%, and the prime lending rate at 10.25%.
    • 23 Nov 2017
      As the holiday season approaches, most of us are counting the days until that year-end bonus hits our account. There’s nothing quite like a little bank balance booster to get us in the holiday spirit.
    • 23 Nov 2017
      The Adelphi Centre (now entitled “ARTEM") in Sea Point, Cape Town, is being extensively renovated, and once complete will offer an ultra-luxurious galleria style shopping centre unlike any other seen on the Atlantic Seaboard or in Cape Town.
    • 23 Nov 2017
      If you are looking to sell your home in today’s real estate market, there are certain things that you need to include both inside and outside your house. Today’s generation of home buyers is looking toward a more eco-friendly, energy and water conscious home, and if your house stands out then you are more likely to be able to sell it.
    • 22 Nov 2017
      Most people know of the Community Schemes Ombud Service (CSOS) and that levies must to paid to fund its operations. In this article the experts at Paddocks will address some of the issues that are causing confusion.
    • 22 Nov 2017
      While sales have noticeably slowed in most sectors in most Cape town suburbs, the security estate sector in Constantiaberg has bucked the trend by remaining buoyant, with sales by August this year already surpassing total sales in 2016.
    • 22 Nov 2017
      The end of the year is fast approaching, and so are all the travellers, tourists and holidaymakers. For those who live near or own a property in a holiday-hotspot, the festive season also brings with it an abundance of short-term rental opportunities. Its a great way for property owners to make a few extra rand for their own holidays or to put towards their savings.
    • 21 Nov 2017
      The buying process is over, and the moving truck has delivered your household goods to your new property. Now it’s time to unpack and turn your new house into a home.
        
    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