PROPERTY MARKET REFLECT YEAR ON YEAR PRICE GROWTH!

South Africa's leading Bond originator, ooba, reported positive year-on-year property price growth, higher year-on-year average bond sizes and a higher bank approval rate for December 2013.

At R933 528, the Average Purchase Price recorded by ooba in December shows a healthy year-on-year price growth of 7.9%, whilst the average First-Time Buyers Purchase Price in December, was R708 989, 6.6%  higher year-on-year.

The average Bond Size originated by ooba was R793 931 in December, 9.0% higher year on year, while the average Bond Size for First-Time Buyers in December was R627 021, which is 9.9% higher year on year.

At the same time, ooba’s Effective Approval Rate of 65.2% is showing a year-on-year improvement of 0.5%. The Trailing Effective Approval Rate, which takes into account bond applications approved after month end was 73%, showing that ooba is obtaining approval for more than seven out of every 10 home loan applications it receives.

“Taken together, these statistics reflect a healthy and growing property market,” says Rhys Dyer, ooba CEO. “We’re happy to see ongoing real property price growth, which will provide both the property market and lending markets with confidence going into 2014.”

The average deposit paid in December was 15% of the purchase price at R139 597, down from 15.8% in 2012. This decrease is also reflected in the comparison between the average annual deposits in 2012 and 2013. In 2012, buyers were offering an average deposit of 14.66% of the purchase price, while in 2012 the average was 15.22% of the purchase price – a decrease that Dyer attributes to improved lender appetite.

The overall value of bond applications received during 2013 was 13% higher than in 2012, with the value of home loan approvals secured by ooba during 2013 showing a 20% increase on the previous year.   ooba’s  statistics  show that the average house price for 2013 was R911 322, up by 5.6% on 2012’s average price of R862 940.

“These figures illustrate the improved property and finance market conditions that prevailed during 2013 and which we expect to continue into 2014,” says Dyer. “We’re delighted that the property market has continued to show sustained growth over the past two years, and that lending conditions have eased, making it possible for us to put more South Africans into new homes.”