MARKET CONDITIONS IDEAL FOR FIRST TIME BUYERS

South Africa’s biggest bond originator, ooba, has releasedtheir latest stats that reflect the property market continues to grow and that it is currently an ideal climate for first-time buyers to get a foothold on the property ladder.  55% of ooba’s total intake of bond applications in April was from first-time buyers, which is the highest ratio on record.

ooba’s Average Purchase Price in April, at R947 189 continued to show steady year-on-year growth of 4.2% with the First-time Buyer’s Purchase Price recording a 9.6% year- on -year increase to R743 053.

The Average Approved Bond Size, at R803 811, continues to show year-on-year growth of 5.5% and the Average Approved Bond Size of First-time Buyers at R658 643 is 9.6% higher year on year.  In April, ooba’s Approval Rate remained high at 74%, indicating that ooba continues to secure an approval for more than seven out of ten home loans that it processes.

“Taken together, all these statistics show a healthy lending environment and growing property market,” says Rhys Dyer, ooba CEO. “This is particularly relevant for first-time buyers, at a time when lending conditions are favourable, interest rates are still low – despite the recent increase – and there is further potential for property price growth in this bracket. This sentiment is echoed by the record number of first-time buyer applications which we received in April.”

For all property seekers, but especially first-time buyers, the benefits of using ooba’s prequalification service – oobaqualified – are significant. “Our free oobaqualification service incorporates a credit check and affordability rating so that when you make an offer on a property, you can be confident that the banks will approve your bond. ooba applies to multiple banks on your behalf, improving your chances of approval“ says Dyer.