November results from ooba show record number of first-time property buyers
According to the latest statistics released by ooba, South Africa’s largest bond originator, the average house price recorded in November was R992 162, representing a very significant 8.6% year-on-year increase. Since January 2013, the oobarometer has recorded steady and consistent price growth, indicating that the property market remains buoyant despite weaker economic fundamentals.
Demand for home ownership in the First-time Buyer’s market continues to strengthen. Out of all applications received by ooba in November, 56% were from first-time buyers compared to 54% in November last year, making this month the highest percentage of first-time buyer applications ever recorded by ooba.
Says Rhys Dyer, ooba CEO: “Applications from first-time buyers have increased by 37% over the past seven years. With more first-time buyers entering the property market, the sector as a whole looks set for positive growth.”
Bond approval rates are tracking very positively year-on-year, up 3.8% from November last year. ooba’s total approval rate is 73%, showing that ooba is obtaining approval for more than seven out of every ten home loan applications it receives.
While the lending environment remains stable, first-time buyers and all buyers alike can benefit enormously from being prequalified 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 prequalification 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 prequalified before they start to look– and this is a free service”, concludes Dyer.