ooba, South Africa?s biggest bond originator recorded a 4.6% growth in the average house price from R868,174 in February 2012 to R908,658 in February 2013.
ooba continues to report record results building on the highs set in the last quarter of 2012. The value of home loans approved through ooba in February 2013 was up 23% on February 2012. The value of home loans approved recorded in the first seven months of ooba?s current financial year beginning 1 August, was 37% up on the same period last year.
First-time home buyer activity continues to drive the market, with nearly 52% of ooba?s applicants in February being first time home buyers. The average house price for first-time buyers was up 5.4% year on year to R698,721 and up 1.8% month on month from R686,452 in January.
?We continue to see high levels of activity in this market segment. It is a good sign and encouraging to see that a large proportion of buyers are in their early thirties and are keen to purchase their first home while market conditions are favourable,? says Saul Geffen, ooba CEO.
Despite the high number of first-time homebuyers, the average home loan deposit dropped substantially by 14.2% year on year and 7.3% month on month to R125,843, representing only 13.9% of the average purchase price.
?The slight relaxation in deposit requirements of the last few months has been positive for home buyers, as coming up with the funds for a deposit remains one of the major hurdles to obtaining home finance,? says Geffen. ?It is also an indication of market competitiveness and confidence, as banks gradually ease lending criteria.?
The average approved bond size increased 7.6% to R782,815 in February this year from R727,489 in February 2012.
The average initial bank decline ratio decreased 4.6% year on year and 2.4% month on month to 43.6% in February. The percentage of applications that were declined by one bank but approved by another improved significantly to 28.7%, up 5.9% year on year and 3.2% month on month.
ooba?s effective approval rate, which is the overall percentage of loans approved once ooba has shopped the loan to multiple banks, was 68.9% in February, 6.1% up on February 2012, while ooba?s trailing approval rate, which takes into account loans approved after month-end, is currently 74.3%.
?This means that ooba currently obtains approval for 74% of all home loan applications it facilitates, which compares favourably with the average bank approval rate of 54% across the major lenders. Essentially, homebuyers have a 37% better chance of approval when using ooba,? says Geffen
Full oobarometer analysis:
Indicator Feb
2013 Feb
2012 Change yr on yr
(Feb 13 vs Feb 12) Jan
2013 Change month
on month
(Feb 13 to Jan 13)
Avg purchase price 908,658 868,174 4.6% 894,510 1.6%
Avg purchase price
of first time buyer 698,721 663,092 5.4% 686,452 1.8%
Avg approved bond size 782,815 727,489 7.6% 760,705 2.9%
Avg deposit (as % of purchase price) 13.9% (R125,843) 16.2% (R140,685) -14.2% 15.0% (R133,805) -7.3% Avg age of applicant 36 37 1 Year Younger 37 1 Year Younger Avg initial decline ratio (first bank decline) 43.6% 48.2% -4.6% 46.0% -2.4%
Ratio of applications declined by one lender but approved by another 28.7% 22.8% 5.9% 25.5% 3.2% Effective approval ratio 68.9% 62.8% 6.1% 65.7% 3.2%