Double-digit property price growth and continued lender confidence

Double-digit property price growth and continued lender confidence

The South African property market continues to show positive growth trends, even with the challenging local economic conditions and subdued business and consumer confidence, according to ooba's latest results.

Rhys Dyer, ooba CEO says: "We were pleasantly surprised by a 10.3% year-on-year increase in the Average Purchase Price to a high of R1,045,038 in April. This is the first time since May 2010 that the oobarometer has recorded double-digit year-on-year price growth." The Average Purchase Price for First-Time Buyers also rose by 6.2% year-on-year to R788,953. Although First-Time Buyers continue to make up the majority of the home loan market, ooba's April data indicates that the percentage of Second-Time Buyers increased year-on-year by almost 3% which accounts for the higher average purchase price.

Ooba's home loan lending statistics continue to point to positive signs in terms of home loan lender competition, evidenced by the higher approval rates and more competitive rate concessions recorded in April. The average rate achieved by ooba in April 2015 of prime plus 0.27%, is well down on the average of prime plus 0.58% achieved in April 2014.

"Ooba's home loan approval rate in April remained high at 76%, indicating that the company continues to secure approval for more than seven out of ten home loans that it processes," says Dyer.

While the lending environment remains favourable, first time buyers and all buyers alike can benefit enormously from being prequalified for finance before putting in an offer on a property. "Ooba's free prequalification service provides buyers with a network of highly skilled prequalification experts located around the country, who will assist buyers to access their credit report, assess their credit standing, calculate their affordability, compile the relevant paperwork and, within 24 hours, provide them with a prequalified loan certificate. This enables prospective home buyers to focus on finding their dream home, while we find them the money," concludes Dyer.

Source – Tivvit / Ooba