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Johannesburg - Bond originator ooba said on Tuesday that the number of bond applications in March had reached a three-year high.
Ooba said its statistics showed that the average number of bond applications in March was the highest level recorded for nearly three years, and was 36% higher than the average monthly applications in 2010.
March volumes are, however, only 36% of the application volumes recorded at the peak of the market in May 2007.
The levels of approved home loans also reached a high in March. Ooba said its March figures were the highest value of approved home loans since October 2008.
Saul Geffen, CEO of ooba, said he expects the growth to continue.
"Ooba has experienced consistent month-on-month increases in application intake since the beginning of 2011. February was already significantly up, and March exceeded February by some margin. The good news is that we expect to see this growth continuing."
Geffen said the 650 basis-point interest rate reduction since 2008 was a contributing factor.
"With interest rates currently at a 30-year low, improved affordability has enabled many would-be homeowners to take the leap, as the cost of servicing a bond has reduced considerably.
"The improved affordability, combined with subdued property price growth, low inflation rates and real wage growth, has combined to make this a favourable environment for homebuyers."
Geffen added the continued relaxation in lending criteria by the major lenders was also a contributor to this rise in applications and approvals.
"The ability to obtain financing is one of the biggest drivers in the property market, so the consistent improvements are a positive indicator for the property market going forward."
Ooba said its statistics showed that the average number of bond applications in March was the highest level recorded for nearly three years, and was 36% higher than the average monthly applications in 2010.
March volumes are, however, only 36% of the application volumes recorded at the peak of the market in May 2007.
The levels of approved home loans also reached a high in March. Ooba said its March figures were the highest value of approved home loans since October 2008.
Saul Geffen, CEO of ooba, said he expects the growth to continue.
"Ooba has experienced consistent month-on-month increases in application intake since the beginning of 2011. February was already significantly up, and March exceeded February by some margin. The good news is that we expect to see this growth continuing."
Geffen said the 650 basis-point interest rate reduction since 2008 was a contributing factor.
"With interest rates currently at a 30-year low, improved affordability has enabled many would-be homeowners to take the leap, as the cost of servicing a bond has reduced considerably.
"The improved affordability, combined with subdued property price growth, low inflation rates and real wage growth, has combined to make this a favourable environment for homebuyers."
Geffen added the continued relaxation in lending criteria by the major lenders was also a contributor to this rise in applications and approvals.
"The ability to obtain financing is one of the biggest drivers in the property market, so the consistent improvements are a positive indicator for the property market going forward."
