ooba Records Five-Year High

ooba has recorded in May the company's highest value of home loans approved in five years, bringing ooba’s average approved loans growth to 34% per year for the past five years.  The value of approved home loans in the month of May was 21.3% higher than in May in the previous year. May 2013 was also 362% higher than January 2009, ooba’s lowest month during the midst of the sub-prime, property and financial crises. ooba currently originates more than 20% of all new residential home loans in South Africa, based on independent market share figures.

“It is fantastic to see ooba’s results continuing to consistently exceed expectations and achieve new five-year highs. The company has doubled its overall market share over the past five years and ooba also leads the industry with the highest home loan approval rates,” says Saul Geffen, ooba CEO.

ooba is also continuing to report steady year-on-year house price growth of 5.1%for May, with a month-on-month increase of 0.5% recorded. The average home price for May was R913,500. The first-time buyer’s purchase price is also showing an increase year on year of 4.6% to R675,116. Of ooba’s total intake of applications, 52.1% were from first-time buyers in May.

The initial bank decline ratio is slightly higher year on year by 0.6%. The ratio of home loan applications declined by one lender then granted by another has decreased by 2.6% to 25.8%.

The average deposit in May was 11.9% higher year on year at 16.9% of the average purchase price.

“It remains important for potential buyers to have a deposit and they should save up for this in advance of making an offer if they want to improve their chances of approval and achieve favourable terms,” says Geffen. 

 

Full oobarometer analysis:

 

Indicator

May

2013

May

2012

Change yr on yr

(May 13 vs May 12)

Apr

2013

Change month

on month

(May 13 to Apr 13)

Avg purchase price

913,500

869,088

5.1%

908,802

0.5%

Avg purchase price

of  first time buyer

675,116

645,458

4.6%

677,712

-0.4%

Avg approved bond size

758,848

737,894

2.8%

761,259

-0.3%

 

Avg deposit (as % of purchase price)

 

16.9%

(R154,652)

15.1%

(R131,194)

11.9%

16.2%

(R147,543)

4.3%

Avg age of applicant

37

37

No Change

37

No Change

Avg initial decline ratio

(first bank decline)

48.5%

47.9%

0.6%

46.0%

2.5%

 

Ratio of applications declined by one lender but approved by another

 

25.8%

28.4%

-2.60%

24.9%

0.9%

Effective approval ratio

64.0%

65.7%

-1.7%

65.5%

-1.5%