House price growth mod­er­ates

Business Day - Home Front - - HOMEFRONT -

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.

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