February Statistics from ooba Show Continued Growth in the Property Market

The latest statistics from ooba, South Africa’s biggest bond originator, 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%

Hello ooba news

In 2013, South Africa saw slow but steady recovery in the property market, paving the way for greater growth in the year to come.

 

Properties are languishing on the market as buyers remain cautious - but there are things sellers can do to get the best possible price according to SA's largest mortgage originator. Careen Mckinon, Provincial Sales Manager Western Cape at ooba, said home sellers have to be ultra savvy these days. Here are ooba's top tips to make your home as appealing as possible without breaking the bank.

The latest 'oobarometer' price index, first launched by ooba (formerly MortgageSA) in July this year, showed that average house prices have risen 3.4% in the month of September 2008, year on year.