select
|

Property prices continue to grow

The latest statistics from  South Africa’s biggest bond originator, ooba, indicate that property prices continue to show positive growth. ooba’s Average Purchase Price recorded for February was R958 048 – a healthy 5.4% year-on-year increase and a month-on-month increase of 0.2%.

The Average Approved Bond size was also 3.7% higher year on year and 1.2% higher month on month at R811 299.

The Average Purchase Price for First-time Buyers also showed positive year-on-year growth of 4.2% to R728 125. The Average Approved Bond Size for First-time Buyers was R656 321, which is 2% higher year on year. In February, 52% of ooba’s total bond applications were from first-time buyers.

The Average Deposit recorded by ooba in February was R146 749 or 15.3% of the purchase price.  This represents a decrease of 5.6% month on month, indicating a greater willingness from lenders to lend at higher loan to value.

“All of these metrics show continued positive growth in the property market, as the result of a combination of lender and buyer confidence,” says Rhys Dyer, ooba CEO.

The Initial Bank Decline ratio at 45.3% is up year on year by 1.7% and up month on month by 0.6%. On the other hand, the Ratio of Applications Declined by One Lender, Granted by Another at 29.9%, shows a year-on-year increase of 1.2%.

Taken together, these metrics amount to ooba’s Trailing Effective Approval Rate for February sitting at 73%.

“This shows that ooba is securing approvals for more than seven out of ten of the home loans that it processes,” says Dyer. “It highlights the benefits that ooba offers home buyers by being able to submit their home loan applications to multiple lenders, thus ensuring a significantly better chance of competitive approval.”

Full oobarometer analysis:

Indicator

Feb

2014

Feb

2013

Change yr on yr

(Feb 14 vs Feb 13)

Jan

2014

Change month

on month

(Feb 14 to Jan 14)

Avg purchase price

958,048

908,658

5.4%

956,112

0.2%

Avg purchase price

of  first time buyer

728,125

698,721

4.2%

754,487

-3.5%

Avg approved bond size

811,299

782,421

3.7%

801,391

1.2%

Avg deposit (as % of purchase price)

15.3%

(R146,749)

13.9%

(R126,237)

10.1%

16.2%

(R154,721)

-5.6%

Avg age of applicant

37

36

1 Year Older

37

No Change

Avg initial decline ratio

(first bank decline)

45.3%

43.6%

1.7%

44.7%

0.6%

Ratio of applications declined by one lender but approved by another

29.9%

28.7%

1.2%

30.0%

-0.1%

Effective approval ratio

68.2%

68.9%

-0.7%

68.7%

-0.5%

Trailing Effective approval ratio

73.0%

69.8%

3.2%

74.1%

-1.1%




  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 21 Jun 2018
      Anyone who’s ever been involved in a building project that’s gone wrong will appreciate the importance of adequate insurance cover in the construction industry.
    • 21 Jun 2018
      A recent news story about a blind tenant caught in a legal battle with his body corporate over letters and notices he was unable to read and consequently comply with has raised the question: what are the legal obligations for landlords with disabled tenants?
    • 21 Jun 2018
      A trend that’s taken the world by storm in recent years is that of hygge (pronounced: hue-guh), a Danish concept that is about creating intimacy, connecting with loved ones and taking pleasure in small, ordinary things.
    • 20 Jun 2018
      Buying or selling real estate isn’t as easy as it is portrayed sometimes, especially if there is a death of a party during the transaction which can make it awkward, tricky and inconvenient.
    • 20 Jun 2018
      With interest rates remaining at historic lows and banks continuing to compete for mortgage finance business, first-time buyers with funds at their disposal are currently well-placed to gain that initial foothold on the property ladder, particularly in the light of the slightly lower growth rates currently experienced in residential property values.
    • 20 Jun 2018
      The average size of bond granted in SA has grown 7,7% in the past 12 months to R934 000, according to BetterBond, the country’s biggest bond originator.
    • 19 Jun 2018
      In the current market, letting out a property can be a good option as rental demand remains strong, especially in the northern suburbs of Johannesburg. This is according to Chris Renecle, MD of Renprop. However he says that before homeowners let their property out, there are five key points they should make sure are covered before they market the property for rent and sign any lease agreements.
    • 19 Jun 2018
      The Capetonian dream is to live by the ocean with the iconic mountain making an appearance somewhere in the horizon. But, that dream comes with a hefty price tag that many simply cannot afford. But, should you venture some kilometres out of the city centre, entirely new realms of beachside bliss await you …
        
    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