Positive house price growth and record number of first time home buyers

The latest statistics from ooba, South Africa’s biggest bond originator, show positive year-on-year price growth of 3.7% reflecting an average purchase price of R913,364.  The average year on year price growth for the first 6 months of 2013 was 4.9% against an average of 6.04% for the 5 months to end of November 2013. This points to stronger price growth trends in the second half of the year.

Healthy price growth was recorded in the First-time Buyers segment, with an average purchase price of R707,428, which is an increase year on year of  6.2%.   54% of ooba’s applications in November were from first-time buyers, almost 3% higher year-on-year, and reflecting the highest percentage level of activity recorded in this market.

“The ideal environment currently exists for first-time buyers to gain a foothold on the property ladder,” says Rhys Dyer, ooba CEO.  He says that the present market conditions are supported by the low interest rate environment which, coupled with subdued property price inflation and improved lending policies, is making it easier for first-time buyers to purchase homes.

Other statistics published by ooba reveal that the Average Approved Bond size, at R792,921, was  7.9% higher year on year,  and the Average Deposit recorded was 13.2% of the purchase price.  “We advise potential buyers to save for a deposit, as these loans achieve higher approval rates and better terms”, says Dyer.

The Initial Decline Ratio at 47.4% was up very slightly year on year,  while the Ratio of Applications Declined by One Lender, Granted by another has increased by 2.8% year on year to 27.2%.  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.”

ooba’s Effective Approval Rate of 65.5% for November recorded a year-on-year increase of 0.3% and a month-on-month increase of 0.1%.  The Trailing Effective Approval Rate, which takes into account applications approved after month end, is 72%, showing that ooba is obtaining approval for more than seven out of every 10 home loan applications it receives.

“While the lending environment is improving, first time buyers and all buyers alike can benefit enormously from being pre-qualified for finance before putting in an offer on a property,” says Dyer.  ooba’s expanded prequalification service, called oobaqualified  provides buyers with a network of highly skilled pre-qualification 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.

“Being prequalified allows buyers to shop in the right price bracket with the confidence that in all likelihood, their bond will be approved,” says Dyer. “It makes sense for any prospective home buyer to get oobaqualified before they start to look– and this is a free service.” 

Full oobarometer analysis:






Change yr on yr

(Nov 13 vs Nov 12)



Change month

on month

(Nov 13 to Oct 13)

Avg purchase price






Avg purchase price

of  first time buyer






Avg approved bond size






Avg deposit (as % of purchase price)









Avg age of applicant



No Change


No Change

Avg initial decline ratio

(first bank decline)






Ratio of applications declined by one lender but approved by another






Effective approval ratio






  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 25 Apr 2018
      Whether you are a seasoned seller or new to the game, putting your home on the market is an exciting moment. To ensure you get the best possible outcome these 8 value adding additions to your home is worth the effort.
    • 25 Apr 2018
      After four years of unprecedented growth fuelled by semigration, the Southern suburbs market faced a number of challenges in 2017, including dwindling affordability and a marked slowing in house price growth with many sellers forced to lower their prices in order to secure a sale.
    • 25 Apr 2018
      Mall of Africa, is celebrating its second year of sensational success. This splendid super-regional shopping centre first opened on 28 April 2016, and has grown in popularity, performance and profile since then.
    • 25 Apr 2018
      While the role of trustee in a sectional title scheme is a voluntary and unpaid position, it is one that comes with huge responsibility. Trustees have a fiduciary duty towards their scheme, says Chinelle Hewit, Operations Manager at sectional title finance company Propell.
    • 24 Apr 2018
      The thing about the property ladder is that at some point in our lives we all have reason to want to climb a rung or two higher. Sometimes, it’s because we’ve outgrown our previous dream home, or because we want to be in a better neighbourhood that’s closer to work or to schools. Sometimes it’s because our circumstances have changed, and we’re taking care of elderly parents or relatives. Sometimes, it’s just because we want a property that reflects the financial status our hard work has won.
    • 20 Apr 2018
      Whenever changes in the political ecosystem of a traditional property market create uncertainty, smart investors begin to look elsewhere for new opportunities. Property experts at IP Global have analysed the trends and crunched the numbers to find new markets to explore in Europe and the United States.
    • 20 Apr 2018
      Energy and water self-sufficiency are increasingly important factors in home buyers’ choice of property – especially in Cape Town where the extreme drought of the past few years has made municipal supply costly as well as uncertain.
    • 19 Apr 2018
      During the last decade, rampant development has progressively transformed Cape Town’s property landscape with densification being the order of the day, but there are still one or two hidden gems like Scarborough which have retained their original character, offering an inimitable lifestyle and an attractive investment opportunity.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us