select
|

Property values on the rise

The average house price reached R894,510 in January 2013, up 5.2% from R850,589 in January 2012. Month on month, the average house price increased 3.4% from R865,164 in December 2012, reports ooba, one of the largest  bond originators in the country.

“The property market is gaining confidence and we expect property prices will continue to show positive nominal price growth for the year ahead,” says Rhys Dyer, ooba COO.

First time home buyer activity continues to drive the market, with over 51% of ooba’s applicants in January being first time home buyers.  The average house price for first-time buyers was up 5.5% year on year to R686,452 and up 3.2% month on month to R665,167.

Despite the high number of first time homebuyers, the average home loan deposit dropped 4.5% year on year and 5.7% month on month to R133,805, representing 15% of the average purchase price.

The average initial bank decline ratio decreased 4.3% year on year to 46.0% in January and the percentage of applications that were declined by one bank but approved by another improved significantly by 5.0% to 25.5%.

“That means one in four applications would have been declined had they not been originated to more than one lender,” says Dyer.  

The market conditions are supported by the lower interest rate environment coupled with subdued property price inflation and improved lending policies, says Dyer.

He expects the current environment to persist for 2013.

Full oobarometer analysis:
IndicatorJan
2013
Jan
2012
Change yr on yr
(Jan 13 vs Jan 12)
Dec
2012
Change month
on month
(Jan 13 to Dec 12)
Avg purchase price894,510850,5895.2%865,1643.4%
Avg purchase price
of first time buyer
686,452650,5745.5%665,1673.2%
Avg approved bond size760,705717,3456.0%727,8744.5%

Avg deposit (as % of purchase price)
15.0%(R133,805)15.7%
(R133,244)
-4.5%15.9%
(R137,290)
-5.7%
Avg age of applicant3737No Change37No Change
Avg initial decline ratio
(first bank decline)
46.0%50.3%-4.3%46.0%0.0%

Ratio of applications declined by one lender but approved by another
25.5%20.5%5.0%23.2%2.3%
Effective approval ratio65.7%60.0%5.7%64.7%1.0%



(Moneyweb)


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 23 Jan 2018
      Many people only start thinking about home-ownership when they are ready to “settle down” or start a family, which is why first-time buyers these days are generally in their mid-30s, compared to those in the previous generation who were usually in their mid-20s.
    • 22 Jan 2018
      Moving away from the city to a country or coastal town and a slower-paced life is a frequent new-year resolution for South Africans, but thorough research should be done before you break free from the hustle and bustle, because making the wrong move could turn out to be a very expensive mistake, and even more stressful for you and your family than staying in the “big smoke”.
    • 22 Jan 2018
      Cape Town is home to many breathtaking and historic homes, but House Invermark designed in 1969 by South African architect Gilbert Colyn, with inspiration from two modernist icons: the Glass House by Phillip Johnson and Farnsworth House by Ludwig Mies van der Rohe is in a class of its own.
    • 22 Jan 2018
      2017 was a challenging year for the South African property market in general, despite small pockets of thriving activity in areas like the Western Cape. As we head into 2018, Tony Clarke, Managing Director of the Rawson Property Group, casts his eye forward to property trends and market influences that could make their impact felt in the New Year.
    • 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.
        
    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