ooba’s May statistics show continued double-digit property price growth and higher home loan approval rates.
May’s property indicators released by ooba, South Africa’s largest bond originator, signal that positive property market and home loan lending conditions continue to prevail, despite subdued economic growth.
Rhys Dyer, ooba CEO says: “The Average Purchase Price increased in May by 13.3% to R 1,072,615. This is the second consecutive month that the oobarometer has recorded double-digit year-on-year house price growth.
The oobarometer also shows sustained year-on-year growth in the Average Purchase Price for First-Time Buyers, with a 8.6% rise to R796,261.
Says Dyer: “Six months ago, First-Time Buyers accounted for 56% of applications made to ooba. This ratio dropped to 51% in May, indicating a greater mix of higher value second-time buying activity in the market. Of all applications received in May, 96% were for the purchase of a primary residence, indicating continued weakness in buy-to-let and holiday homes financing activity.”
Statistics show that ooba secures approvals for over seven out of ten home loans that it processes, with its May approval rate at 75%. “Approval rates are 2.5% higher year-on-year and the average interest rate achieved by ooba in May 2015 was prime plus 0.34%, which is well down on the average of prime plus 0.58% achieved in May 2014. “Our statistics point to continued competition in the market for home loan business amongst lenders, highlighting the importance of using an originator to source multiple quotes” says Dyer. ooba’s bond origination services give home buyers the choice of loan offers from up to nine lenders.
Being prequalified for finance before making an offer on a property puts the buyer at an advantage. “By using our prequalification service, home buyers can focus on finding their dream home, while ooba finds the money. Within 24 hours, our countrywide network of highly-skilled prequalification experts assist buyers to access and assess their credit report, calculate their affordability, compile the relevant paperwork and provide a prequalified loan certificate,” concludes Dyer.
Try out ooba's bond repayment calculator to find out what monthly bond expense you can expect on your home loan.