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Johannesburg - Property prices showed positive year-on-year growth (y/y) in March, according to bond originator ooba.
The March oobarometer price index showed that the average house price rose 1.1% y/y to R860 492 from R850 864 a year earlier.
"The growth in the average purchase price among first-time buyers also showed an increase, with year-on-year growth of 4.5% to R623 179 in March from R596 357 a year earlier," ooba said.
According to Saul Geffen, CEO of ooba, the results were both positive and surprising.
"Given the high levels of growth experienced in the first half of last year, and the negative growth recorded for the last consecutive four months, we did not expect prices to return to positive territory so quickly. We will have to wait until next month to see whether this is an anomaly or a return to positive price growth."
Ooba said the average approved bond size increased 7.4% year on year in March to R725 973, compared to R676 256 a year earlier.
The average deposit as a percentage of purchase price also fell 23.9% year on year to R134 519, equivalent to an average deposit of 15.6% of the purchase price.
The number of bond applications in March through ooba was the highest since May 2008 and was 36% higher than the average monthly application intake recorded throughout 2010.
March volumes were, 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 recent high in March 2011 - ooba's March figure was the highest value of approved home loans since October 2008.
Geffen said that he expected 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. We expect to see this growth continuing.
"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," he said.
The March oobarometer price index showed that the average house price rose 1.1% y/y to R860 492 from R850 864 a year earlier.
"The growth in the average purchase price among first-time buyers also showed an increase, with year-on-year growth of 4.5% to R623 179 in March from R596 357 a year earlier," ooba said.
According to Saul Geffen, CEO of ooba, the results were both positive and surprising.
"Given the high levels of growth experienced in the first half of last year, and the negative growth recorded for the last consecutive four months, we did not expect prices to return to positive territory so quickly. We will have to wait until next month to see whether this is an anomaly or a return to positive price growth."
Ooba said the average approved bond size increased 7.4% year on year in March to R725 973, compared to R676 256 a year earlier.
The average deposit as a percentage of purchase price also fell 23.9% year on year to R134 519, equivalent to an average deposit of 15.6% of the purchase price.
The number of bond applications in March through ooba was the highest since May 2008 and was 36% higher than the average monthly application intake recorded throughout 2010.
March volumes were, 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 recent high in March 2011 - ooba's March figure was the highest value of approved home loans since October 2008.
Geffen said that he expected 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. We expect to see this growth continuing.
"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," he said.
