ooba Reports Continued Property Price Growth and Record Approvals

The latest statistics from ooba, South Africa’s biggest bond originator, show that the property market has entered the fourth quarter of 2013 with positive growth and increasing lender confidence. At the same time, ooba has broken new records in approved home loans.

ooba’s Average Purchase price, at R935,252, has shown significant year-on-year price growth of 9.4% and month-on-month growth of 4.4%.

The First-time buyer’s Purchase Price has also shown a healthy year-on-year increase of 9.6% and a month-on-month increase of 5.5% to R711,691. Of ooba’s total intake of bond applications in October, 52.1% were from first-time buyers.

The value of home loans approved through ooba in October this year is 22% up on October 2012.

The Average Approved Bond size at R795,993 was up 7.8% year on year and 3.4% higher month on month. “October 2013’s average bond size is our highest average bond size on record,” says Rhys Dyer, CEO of ooba.

The Average Deposit recorded by ooba was higher both year-on-year and month-on-month by 9.6% and 5.7% respectively, at 14.9% of the purchase price.  This is indicative of the ongoing drive by banks to encourage homebuyers to put down a deposit on their properties..

The Initial Bank Decline ratio is down year on year by 1.6% and is unchanged month on month at 47.2%, while the Ratio of Applications Declined by One Lender, Granted by Another has increased year on year by 1.8% but decreased month on month by 2.2% to 26.7%.

In October, ooba’s Effective Approval Rate, which is the overall percentage of loans approved once ooba has shopped the loan to multiple banks, at 65.4%, has shown a year-on-year increase of 2.0%.

ooba’s trailing approval rate, which takes into account loans approved after month-end, is currently 72.2%, showing that ooba is obtaining approval for more than seven out of every 10 home loan applications it receives.

“Taken together,  ooba’s October statistics are indicative of a stable and  balanced property market that is supported by  improved  lender confidence”  says Dyer.

Full oobarometer analysis

Indicator

Oct

2013

Oct

2012

Change yr on yr

(Oct 13 vs Oct 12)

Sep

2013

Change month

on month

(Oct 13 to Sep 13)

Avg purchase price

935,252

854,740

9.4%

896,258

4.4%

Avg purchase price

of  first time buyer

711,691

649,424

9.6%

674,590

5.5%

Avg approved bond size

795,993

738,213

7.8%

769,628

3.4%

 

Avg deposit (as % of purchase price)

 

14.9%

(R139,259)

13.6%

(R116,527)

9.6%

14.1%

(R126,630)

5.7%

Avg age of applicant

37

36

1 Year Older

37

No Change

Avg initial decline ratio

(first bank decline)

47.2%

48.8%

-1.6%

47.2%

0.0%

 

Ratio of applications declined by one lender but approved by another

 

26.7%

24.9%

1.8%

28.9%

-2.2%

Effective approval ratio

65.4%

63.4%

2.0%

66.4%

-1.0%

 

 

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.