select
|

House price growth slows, record approvals continue, says ooba

Average house price growth declined marginally in December 2012, down 0.6% year on year and 1.7% month on month to R865,164 in December, according to the latest statistics from ooba, South Africa’s biggest bond originator.

However, the average nominal house price in the 12 months to December 2012 grew 3.9% year on year, from R830,641 in 2011 to an average of R862,940 in 2012.

ooba continues to report record approval rates on top of the record highs set in October and November 2012. The value of home loans approved through ooba in December 2012 is up 49% on December 2011, while November and October were up 30% and 47% respectively on the prior year.

The first-time buyer market remains in positive growth year on year. The average house price for first time buyers is up 1.4% year on year to R665,167. Month-on-month shows a marginal decline of 0.2%. The percentage of first-time buyers among ooba’s total applications increased 3.9% year on year to 52.7%.

The average home loan deposit dropped substantially in December to R137,290 (15.9% of the purchase price), down 21.7% year on year and 4.2% month on month.

The average approved bond size increased 5.0% to R727,874 in December this year from R693,528 in December 2011.

The average initial decline ratio decreased 5.7% year on year to 46.0% in December and the percentage of applications that were declined by one bank but approved by another improved by 0.9% to 23.2%.

ooba’s effective approval rate, which is the overall percentage of loans approved once ooba has shopped around to all banks, was 64.7% in December, 4.9% up on December 2011. ooba’s trailing approval rate, which takes into account loans approved after month-end is currently 71.3%.

ooba currently obtains approval for 71% of all home loan applications it processes, which compares favourably with the average bank approval rate of 54% across the major lenders. “ooba leads the market with the highest home loan approval rates,” says Geffen. “Based on the stats, homebuyers using ooba have on average a 32% better chance of securing home loan approval.”

He says that the market conditions are supported by the low interest rate environment coupled with subdued property price inflation and improved lending policies. He expects the current environment to persist into 2013.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 19 Feb 2018
      Situated approximately halfway between Johannesburg and Pretoria, Midrand was established in 1981 and forms part of the City of Johannesburg Metropolitan Municipality. It has become one of the major business hubs in the country with major pharmaceutical, textile, telecommunication and motoring giants situated within its boundaries.
    • 19 Feb 2018
      The PayProp Rental Index Annual Review of 2017 shows that the rental market suffered from much volatility during the year. It kicked off with rental growth spiking in January with weighted year-on-year growth (YoY) growth peaking at 8.3% before dropping to 6.34% in July, dipping down to less than 5% in November and then experiencing a slight uptick at 5.75% in December.
    • 19 Feb 2018
      While most homes in cluster complexes, estates and other gated communities come with at least one garage or carport, residents would often like additional permanent parking or storage areas for things like trailers, bikes, boats and caravans.
    • 16 Feb 2018
      Whether you own a property in a sectional title complex or are looking to invest in one, the financial standing of the body corporate is the single most important thing that can affect your investment or your buying decision.
    • 15 Feb 2018
      One positive consequence of the financial crash in 2008 was the rise in consumerism, especially in the property market, where buyers have steadily become more knowledgeable and more value conscious.
    • 15 Feb 2018
      While most homeowners will take the agent’s commission into consideration when they are trying to determine what the will get out from the sale of their property, many often forget to factor in the other costs involved in a home sale, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 14 Feb 2018
      The forecast for the national rental market in 2018 remains a mixed bag of good news and bad news. Although rentals are expected to rise slowly as the challenges of home affordability and tighter lending criteria tighten their grip, it’s a double-edged sword as the market also will come under increasing pressure from factors like declining disposable income levels.
    • 14 Feb 2018
      While you may not have intended to place your home on the market, what do you do if you receive an unexpected offer on your home? In areas where demand outweighs the current supply of homes available to buyers, it is not unheard of to have buyers make offers on homes that aren’t on the market, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
        
    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