ooba Statistics Show Positive Start to 2014 with Record Home Loan Approval Rate

The January statistics from ooba, South Africa’s biggest bond originator, show that the property market has entered the new year on a continuing high note, with ooba’s Approval Rate increasing by 3.0% year on year to 68.7%, which is the highest ratio on record since June 2008.   Property prices and bond sizes are also showing steady growth.

 

The Average Purchase Price recorded by ooba in January was R956 112, up 6.9% year on year and 2.4% month on month. The Average Approved Bond was R801 391, 5.4% higher year on year, and 0.9% higher month on month.

 

ooba’s approval rate for January of 68.7%, showed a significant increase on December’s approval rate of 65.2% and January 2013’s rate of 65.7%.

 

“Taken together, these statistics reflect a continued trend of healthy growth in the South African mortgage and property market,” says Rhys Dyer, ooba CEO. “It is extremely satisfying to see improvements in home loan approval rates, as this reflects that we are getting more of our clients into new homes than ever before, in line with the positive market conditions.”

 

These conditions are further indicated by the Initial Bank Decline ratio being lower both year on year and month on month at 44.7%, and the Ratio of Applications Declined by One Lender, Granted by Another showing a significant year-on-year and month-on-month increase of 4.5% and 4.3% respectively to 30%.

 

January also showed strong activity in the first-time buyers segment, with the First-time Buyers’ Purchase Price showing year-on-year appreciation of 9.9% and month-on-month appreciation of 6.4% at R754 487.

 

The Average Approved Bond Size for First-time Buyers was R650 000, which is 9.2% higher year on year. Of ooba’s total applications in January, 52.5% were from first-time buyers.

 

“As the market improves, and banks ease their lending criteria, it is making it easier for first-time buyers to enter the market,” says Dyer.

 

 

 

 

Full oobarometer analysis:

Indicator

Jan

2014

Jan

2013

Change yr on yr

(Jan 14 vs Jan 13)

Dec

2013

Change month

on month

(Jan 14 to Dec 13)

Avg purchase price

956,112

894,510

6.9%

933,528

2.4%

Avg purchase price

of  first time buyer

754,487

686,452

9.9%

708,989

6.4%

Avg approved bond size

801,391

760,143

5.4%

793,931

0.9%

 

Avg deposit (as % of purchase price)

 

16.2%

(R154,721)

15.0%

(R134.367)

8.0%

15.0%

(R139,597)

8.0%

Avg age of applicant

37

37

No Change

37

No Change

Avg initial decline ratio

(first bank decline)

44.7%

46.0%

-1.3%

46.9%

-2.2%

 

Ratio of applications declined by one lender but approved by another

 

30.0%

25.5%

4.5%

25.7%

4.3%

Effective approval ratio

68.7%

65.7%

3.0%

65.2%

3.5%

 

Hello ooba news

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