A shifting property market due to positive house price growth

July 2013 reflect positive year-on-year house price growth of 6.6% to an average property purchase price of R902,900 .

Positive price growth was also recorded in the First-time Buyers segment, with an average purchase price of R710,312, which is an increase year on year of 8.1%. 53% of bond iriginator, ooba’s applications in July were from first-time buyers, almost 2% higher month on month, indicative of the accelerated level of activity in this market.

ooba has also reported a new high in approved home loans for July, exceeding its record set in May this year. The value of new home loans approved through ooba in July 2013 is up 27% on July 2012. For the seven-month period of January to July 2013, ooba’s approvals were up 24% over the same period in 2012 and up 227% over the corresponding period in 2009

 “Property price growth and higher home loan approval rates continue to positively influence the property market,” says Rhys Dyer, CEO of ooba. “There is renewed confidence in the market and home buyers have more access to credit for home loans, which has been aided by record low-interest rates.”

Other statistics published by ooba reveal that the Average Deposit recorded was up 16% year on year and 6.6% month on month to 14.6% of the purchase price. “The increase in the average deposit shows that it is in every buyer’s best interest to put down as high a deposit as possible in order to increase their chances of approval and improve the pricing of their deal,” says Dyer

The Average Approved Bond Size was 4.1% higher year on year

The Initial Bank Decline ratio dropped by 0.7% year on year – an  average of 47.3% in July – while the ratio of applications declined by one lender, granted by another increased by 2.3% year on year to 29.9%. Dyer says these figures highlight the need for consumers to shop around. “Homebuyers are assured a higher probability of an approved loan if they apply to more than one bank, a service that bond originators such as ooba provide for free.”

Lenders’ improved appetite for extending credit is visible in ooba’s  higher effective approval rate. This is the overall percentage of loans approved once ooba has obtained quotes from multiple banks. The effective approval rate was 66.8% in July, 1.5% higher year on year.

ooba’s trailing effective rate, which takes into account loans approved after month-end is currently 75%, showing that ooba is obtaining approval for more than seven out of every 10 home loan applications it receives.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 20 Nov 2017
      Since 2012, sectional title complexes have been leading the South African property market, not only in terms of price growth, but sales volumes as well. Remaining relatively strong, even in the face of 2017’s political and economic turmoil, experts say this market segment could offer valuable insight into South Africans’ property purchase priorities.
    • 20 Nov 2017
      Regardless of whether you are purchasing your first start-up home, downsizing or moving in with roommates, finding ways to maximise small spaces can be a big advantage, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 20 Nov 2017
      Property valued at approximately R1 billion is on High Street Auctions’ sales floor during the month of November, including the much-anticipated sale of the Tshwane Mayoral Residence and the land occupied by one of South Africa’s oldest operating gold mines.
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    • 17 Nov 2017
      The EAAB (the Estate Agency Affairs Board) recently claimed that around 50,000 illegal estate agents could currently be operating illegally.
    • 16 Nov 2017
      Penthouses are synonymous with New York – characterised by high-rise living that is decidedly luxurious and spacious. While exclusivity comes at a price, you can still create a “penthouse” look and feel in your existing apartment or even the upstairs bedroom of a double storey house with some clever design changes and styling touches.
    • 16 Nov 2017
      The area has long been popular with kite surfers and, with escalating property prices in Cape Town itself, is increasingly in demand with home owners who work in town, but are looking to invest in more affordable properties.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us