select
|

More demand, more bonds and the market keeps on growing

The average home purchase price showed a year-on-year increase of 11,6% at end-February, and now stands at R882 000, according to the latest statistics from BetterBond– which accounts for more than 25% of all residential mortgage bonds being registered in the Deeds Office and is SA’s leading mortgage origination group.
 
These figures also show substantial year-on-year increases in both the number and value of home loan approvals, with BetterBond achieving a massive 12,6% increase in its home loan approval ratio to 76,6%.
 
“We secured more than 52 000 home loan approvals with a total value of R38,3bn in the 12 months to end-February, compared to 49 000 approvals valued at R34,5bn in the previous 12 months,” says group CEO Shaun Rademeyer.
 
“This shows continued healthy growth in the residential property market, with prices rising in response to higher demand from prospective buyers as well as the higher rate of bond approvals, which enable more of those purchasers to actually buy the homes they want.”
 
This positive trend is underlined, he says, by the fact that the initial decline ratio for home loan applications made through BetterBond has dropped by almost 19% in the past 12 months, while both the number and value of “rescued” applications (those declined by one bank but approved by another) have risen substantially.
 
“Indeed, of the R38,2bn worth of applications approved in the past 12 months, some R18bn worth were applications that were ‘rescued’ because we were able to submit and motivate them to multiple lenders.”
 
The average bond amount approved showed a year-on-year increase of 4% at the end of February to R740 000, with the average percentage of purchase price required as a deposit staying virtually static at just under 19%, says Rademeyer.
 
And there is still strong activity in the first-time buyers’ sector, he notes, although the percentage of applications being made by such buyers has declined, year-on-year, from 53%  of the total to 48% - “probably in response to a drop in the number of 100% (full purchase price) home loans being granted and the simultaneous substantial increase (7,7%) in the percentage of buyers being asked to pay a deposit of at least 10% of the purchase price”.
 
The average deposit required of first-time buyers over the past 12 months has in fact been 10,6% of the purchase price, while the average home purchase price in this sector of the market has risen 8,4% to R628 000, thanks mostly to the fact that new development is still lagging demand.


Click the image for a larger version


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 23 Nov 2017
      If you are looking to sell your home in today’s real estate market, there are certain things that you need to include both inside and outside your house. Today’s generation of home buyers is looking toward a more eco-friendly, energy and water conscious home, and if your house stands out then you are more likely to be able to sell it.
    • 22 Nov 2017
      Most people know of the Community Schemes Ombud Service (CSOS) and that levies must to paid to fund its operations. In this article the experts at Paddocks will address some of the issues that are causing confusion.
    • 22 Nov 2017
      While sales have noticeably slowed in most sectors in most Cape town suburbs, the security estate sector in Constantiaberg has bucked the trend by remaining buoyant, with sales by August this year already surpassing total sales in 2016.
    • 22 Nov 2017
      The end of the year is fast approaching, and so are all the travellers, tourists and holidaymakers. For those who live near or own a property in a holiday-hotspot, the festive season also brings with it an abundance of short-term rental opportunities. Its a great way for property owners to make a few extra rand for their own holidays or to put towards their savings.
    • 21 Nov 2017
      The buying process is over, and the moving truck has delivered your household goods to your new property. Now it’s time to unpack and turn your new house into a home.
    • 21 Nov 2017
      When an offer to purchase a property is signed by both buyer and seller, this constitutes a binding agreement or “Deed of Sale” between the two parties. However, in most cases the “standard contract” might not be enough to cover all the specifics pertaining to the sale. The agreement may require some additions or alterations to clauses, which needs an expert hand in the drafting of such
    • 21 Nov 2017
      As more and more South Africans look to invest in property abroad, Spain is offering them one of the best deals in global real estate.
    • 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.
        
    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