ooba’s July statistics indicate moderating property price growth but ongoing favourable home loan market conditions.
Property indicators for the month of July released by ooba, South Africa’s largest bond originator, point to continued real house price growth in the housing market, although at a milder pace.
ooba’s Average Purchase Price, increased by 8.8% from R937,512 in July 2014 to the current level of R1,019,556. Although still growing at a healthy pace, this is a slowdown from the 11% year-on-year increase recorded for the second quarter of 2015.
The Average Purchase Price of First-time Buyers also shows a slower growth rate of 4.5% year-on-year to R764,317 from R731,651 in July 2014.
Rhys Dyer, ooba CEO says, “The mild slowing in the pace of house price growth is unsurprising given the challenging local economic conditions, coupled with subdued consumer confidence in a rising interest rate environment.“
ooba’s home loan lending statistics, however, continue to point to positive signs in terms of home loan lender competition. “Indicators of continued lender confidence include a 4% improvement in the year-on-year bond approval rates in July, as well as further improvements in pricing from banks.
Statistics show that ooba secures approvals for more than seven out of ten home loans that it processes, with its July approval rate at 73.2%. “Prospective home buyers should consider ooba’s free bond origination services, to shop for the most advantageous home loan offer from a choice of up to nine lenders. Our prequalification service allows home buyers to focus on finding their dream home, while ooba finds the money,” concludes Dyer.