select
|

ooba’s February statistics signify house price growth dipping to below the inflation rate

Although ooba’s property statistics for February indicate year-on-year growth in house prices, slower year-on-year price growth trends are emerging. The Average Purchase Price is up by 4.3% to R1, 047,277, while the Average Purchase Price of First-time Buyers increased by 4.6% to R801, 144.

Rhys Dyer, ooba’s CEO, says: “At 4.3%, growth in property prices is currently below the inflation rate, which translates to negative growth in real terms. The less buoyant property market correlates with expectations of slower real economic growth and rising interest and inflation rates, which affect both consumer and business confidence.”
 
The deceleration in property price growth rates can be seen in the month-on-month Average Purchase Price, which is down -0.7%, while the Average Purchase Price for First-time Buyers recorded a nominal 0.1% increase. 

Dyer adds: “Year-on-year, the Average Deposit as a Percentage of Purchase Price decreased by 34.3%. In February, ooba’s 100% bond applications dropped sharply from an average of 49% of ooba’s total intake in the preceding 12 months to 42% in February, despite its ratio of first-time buyers out of all applications received remaining fairly constant, Dyer explains: “This means that the lower ratio of 100% bond applications is not caused by an exodus of first-time buyers from the market, who currently account for 53% of ooba’s total intake of applications. More homebuyers entered the market in February with deposits, which is a good sign for the home loan market”.

The effect of the recent rate hike on housing affordability is evident in the 1.3% dip in the year-on-year total approval rates recorded in February. Fortunately for homebuyers, banks are still in healthy competition for market share in the home loan sector, which is evident in the more attractive average interest rates offered in February. 
 
ooba’s home loan approval rate of 76% in February indicates that the company continues to secure approval for more than seven out of ten home loans that it processes. “Given the competitiveness and complexities of the current home loan environment, we recommend that prospective buyers use the professional services of a bond originator. Obtaining the most cost-effective home loan deal is an essential part of the journey to find a dream home,” concludes Dyer.



  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 19 Jan 2018
      Extending from Randfontein in the west to Roodepoort in the east and including the towns of Krugersdorp and Magaliesburg, the West Rand has a plethora of property available to residents who choose to make this unique area their home.
    • 19 Jan 2018
      When it comes to financial planning, doing the work to ensure you’re prepared for unexpected emergencies is just as important as ticking off your other goals and New Year’s resolutions. The beginning of the year is also the perfect time to review your various insurance policies.
    • 19 Jan 2018
      No surprises at the first Monetary Policy Committee of 2018, as Reserve Bank Governor, Lesetja Kganyago, announced that the interest rates would stay at their current levels.
    • 18 Jan 2018
      The Southern Suburbs make up some of the most popular residential areas in Cape Town, comprising charming groups of suburbs which lie to the south-east of the slopes of Table Mountain. It is seen as the city's most expensive residential neighbourhoods with a choice of various private schools, upmarket eateries, wine estates, beautiful homes and trendy apartments.
    • 18 Jan 2018
      New year, new goals! If you’ve resolved to purchase your first property in 2018, then this 6-step guide from the Rawson Property Group is a must-read. It will help you navigate and simplify what is often be seen as a confusing process of buying your first home – right from the house-hunt to the house-warming.
    • 17 Jan 2018
      While the current property market may still favour buyers, it doesn’t mean that they shouldn’t be well prepared before putting in an offer to purchase.
    • 17 Jan 2018
      Lightstone lists Blair Atholl as the most expensive suburb with an average house price of R11.2 million, followed by Westcliff (R10.5 million), Dunkeld (R9.3 million), Sandhurst (R9.1 million) and Inanda (R7.2 million).
    • 17 Jan 2018
      As it currently stands, there are four main ways in which a home can be bought in South Africa, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, who adds that deciding in which legal entity to purchase the property is not a decision that should be entered into lightly, as each has its pros and cons.
        
    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