House price growth moderates
PACE SLOWS House price growth in SA continued to moderate in August from its recent strong levels, according to results released by bond originator ooba. The oobarometer price index showed the average house purchase price increased by 3,8% year-on-year in August to R825 264 from R795 241 a year earlier. Saul Geffen, CEO at of ooba, says he expects the level of growth in house prices to continue at a slower pace for the rest of the year. The average purchase price of a first time buyer showed a 3,1% increase to R566 845 from R549 949 a year earlier. The average approved bond size increased 20,4% year-on-year to R718 268 from R596 575. The average deposit as a percentage of the purchase price also showed a significant 48,0% drop to just 13% of the purchase price (equivalent to R106 996) from 25% (R198 666) a year ago. The average initial decline ratio remained stable, up a marginal 1,0% to 46,1%. However, the ratio of applications declined by one lender but approved by another improved significantly to 30,4% from 19,2% a year earlier. As a result, the effective decline ratio fell 4,4% year-on-year to 32,0% from 36,4%, giving an effective approval rate of 68%, the highest level recorded since October 2008.