PROPERTY: Positive House Price Growth and Record Approvals Reported
Recent Gauteng Business News
The latest statistics from ooba, South Africas biggest bond originator, show positive year-on-year house price growth in July of 6.6% to an average purchase price of R902,900.
Healthy 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 oobas 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, oobas 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 buyers 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.
Business News Sector Tags: Property|