Johannesburg - The positive trend in house price growth is continuing,
according to the latest oobarometer released on Thursday.
The monthly survey is published by home loan originator ooba, formerly MortgageSA.
The November oobarometer price index recorded an increase in the
year-on-year house prices of 6.3%.
"We continue to see a positive trend in house price growth,"
said Saul Geffen, chief executive of ooba.
"After six consecutive months of the oobarometer showing a rise
in house prices, I believe it is fair to say the property market is
safely back in positive territory," he said.
The average purchase price according to the oobarometer was
R844,250
in November compared to R794 496 in November 2008.
The year-on-year average approved bond size increased by 10.1%, from R645 942 in November 2008 to R711 419 in November
2009.
According to the oobarometer, the month-on-month average
approved bond size also increased marginally in November by 2.6% from R693 008 in October this year.
"The increase in both the month-on-month and year-on-year bond
size, is
a function of the increases in house prices and lower deposit
requirements" Geffen said.
The average deposit as a percentage of purchase price was now at
15.7% of purchase price, which was substantially down from
the 24 percent levels a few months ago.
"The significant drop in deposit requirements is a positive
indicator of bank lending appetite and their expectations for the
property market going forward," Geffen said.
100% bonds
"Banks have relaxed their lending criteria further during the
last few
months and are now offering 100% bonds once again, providing
relief for potential homeowners."
According to the oobarometer, the November average bank decline
ratio was at 49.9%, which was marginally up compared to 49.6% in October.
The ratio of applications declined by one lender, but approved
by another
reflected a year-on-year decrease of 12.5%, but a
month-on-month increase of 4.6%, with 23.2% of
applications declined by one lender subsequently approved by
another.
"The month-on-month improvement in this ratio indicates that
there is an improved opportunity now to secure an approval from
another lender in cases where the application was initially
rejected," Geffen said.
"Increased application volumes supported by improved
affordability and
increased bank competitiveness has underpinned a recovery in the
property market."
Geffen believed that 2010 would see market conditions continuing
to improve, and that increased transaction volumes and price growth
would be sustained."
- Sapa