ooba’s
June Results Show Ongoing Property Buyer and Lender Confidence
House prices continue to show steady nominal year-on-year
and month-on-month growth, according to the latest statistics from ooba, South Africa
51.7% of ooba’s applications in June were from first-time
buyers, which is down marginally by 0.3% year on year. Growth was also recorded
in the first-time buyers’ average purchase price, increasing year on year at a
slightly slower rate of 1.8% to R694,143.
ooba’s average approved bond size in June was higher both
year on year and month on month by 8.2% and 4.7% respectively. The average
approved bond size for first-time buyers has also increased year on year by
7.5% with a month-on-month increase of 4.5%.
“June 2013’s average bond size is our highest average bond
size on record,” says Rhys Dyer, CEO of ooba. “This, coupled with the steady
nominal growth in house prices, points to greater confidence in the property
market.
There are also a number of indicators that demonstrate
lenders’ improved appetite for extending credit for home loans. These include:
- Lower average
deposits, down by 8.7% year on year to R125,608, equal to 13.7% of the
average purchase price.
- Lower initial
bank decline ratio, down slightly year on year by 0.5% and month on month
by 0.9%.
- An increased
percentage of applications declined by one lender and then granted by
another, up year on year by 0.8% and month on month by a healthy 2.9% to
28.7%.
- ooba’s
increased effective approval rate to 66.1%, which is showing a
year-on-year increase of 0.8% and a strong month-on-month increase of
2.1%. In addition, ooba’s trailing effective approval rate, which takes
into account approvals that come through after month-end, is 75.1% – up on
the 73.4% reported in May. This indicates that over three quarters
of loan applications processed through ooba are now being approved.
“With one of the highest approval rates in the market,
ooba continues to prove that using a bond originator gives you a better chance
of getting your home loan approved, in the shortest possible time,” says Dyer.
Full oobarometer analysis:
|
Indicator
|
Jun
2013
|
Jun
2012
|
Change
yr on yr
(May 13 vs May 12)
|
May
2013
|
Change month
on month
(Jun 13 to May 13)
|
|
Avg purchase price
|
919,965
|
863,122
|
6.6%
|
913,500
|
0.7%
|
|
Avg purchase price
of first time buyer
|
694,143
|
682,042
|
1.8%
|
675,116
|
2.8%
|
|
Avg approved bond size
|
794,357
|
733,948
|
8.2%
|
758,848
|
4.7%
|
|
Avg deposit (as % of purchase
price)
|
13.7%
(R125,608)
|
15.0%
(R129,174)
|
-8.7%
|
16.9%
(R154,652)
|
-18.9%
|
|
Avg age of applicant
|
37
|
37
|
No Change
|
37
|
No Change
|
|
Avg initial decline ratio
(first bank decline)
|
47.6%
|
48.1%
|
-0.5%
|
48.5%
|
-0.9%
|
|
Ratio of applications declined by
one lender but approved by another
|
28.7%
|
27.9%
|
0.8%
|
25.8%
|
2.9%
|
|
Effective approval ratio
|
66.1%
|
65.3%
|
0.8%
|
64.0%
|
2.1%
|
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