October Results from ooba Signify that Outlook for Property Market Remains Favourable

October 2014 data recorded by ooba, South Africa’s largest bond originator, reflect sustained growth in the property market.

Says Rhys Dyer, ooba CEO: “A few key statistics point towards a trend of ongoing growth. These include the continued rise in property purchase prices, higher bank approval rates, higher approved bond sizes, lower deposits and improved bank pricing.”

The October oobarometer house price index revealed that the average house price rose 1.9% year-on-year to R953,018 from R935,252 a year earlier.  Strong price growth in the first-time buyer’s market was also recorded with a year-on-year increase of 7% from R711,691 to R761,653.

A new indicator has been included in the oobarometer, which is the average interest rate measured across ooba’s population of approved home loans for the month under review.  October’s statistics reveal that the average interest on approved home loans was prime plus 0.46%, which is 0.07% lower than the 0.53% above prime measured in October last year.

There are also a number of indicators in the oobarometer that demonstrate banks improved appetite for extending credit for home loans.  These include:

  • Lower average deposits, down 27.6% year-on-year
  • Higher approved bond size, up 6.9% year-on-year
  • Higher total approval ratio of 74.1%
  • Improved average interest rate of prime plus 0.46%

“Increased bank approval rates, lower deposit requirements and increased bond sizes are all factors that will continue to positively influence the property market,” says Dyer.   “With one of the highest approval rates in the market, ooba  continues to prove that using a bond originator gives you a better chance of getting your home loan approved, in the shortest possible time at no additional cost.” 

ooba offers a host of bond calculators to help prospective home owners.

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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.