Money

CityPress - - Business -

Ac­cord­ing

to prop­erty sta­tis­tics for Jan­uary 2016 from ooba, first-time buy­ers made up 54% of the home loan ap­pli­ca­tions re­ceived by the bond orig­i­na­tor.

The av­er­age pur­chase price in­creased by 6.4% year on year to R1 054 357, while the av­er­age pur­chase price for first-time buy­ers showed a smaller in­crease of 3.2% to R800 442.

Rhys Dyer, ooba’s CEO, says: “Av­er­age bond val­ues are higher, which goes hand in hand with re­duced de­posit sizes. The av­er­age de­posit fell by 17.1% year on year, while de­posits from first-time buy­ers shrank by 25.4% year on year.

“In­creased bond sizes and de­creased de­posit sizes show that lenders are still com­pet­ing for mar­ket share in the home loan fi­nance sec­tor.”

How­ever, Dyer cau­tioned that the prop­erty and home loan en­vi­ron­ments ap­pear to be less buoy­ant go­ing into this year.

Bank ap­proval rates are only marginally up year on year, while month-on-month bank ap­proval rates have de­clined. In the same way, av­er­age in­ter­est rates also im­proved year on year, but de­te­ri­o­rated slightly month on month.

Dyer says the ef­fect of the re­cent in­ter­est rate hike has not yet been seen in ooba’s sta­tis­tics.

“Con­sid­er­ing the tougher in­ter­est rate en­vi­ron­ment, the poor eco­nomic growth fore­cast and the ris­ing cost of liv­ing ex­penses, we be­lieve that hous­ing af­ford­abil­ity is go­ing to be the great­est chal­lenge for the res­i­den­tial prop­erty mar­ket in 2016,” he says.

Dyer says all buy­ers can ben­e­fit enor­mously by qual­i­fy­ing for fi­nance be­fore putting in an of­fer on a prop­erty.

When

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