House prices on the up

Johannesburg - The average house price has increased by over 5% in the past year, bond originator ooba announced on Monday.

"The property market is gaining confidence and we expect property prices to continue to show positive nominal price growth for the year ahead," the company said in a statement.

The average house price reached R894 510 in January 2013, up 5.2% from R850 589 in January 2012.

The market was driven by first time home buyers.

"First time home buyers continue to drive the market, with over 51% of ooba's applicants in January being first time buyers.

"The average house price for first time buyers was up 5.5% year on year to R686 452 and up 3.2% month on month to R665 167."

The current market conditions were supported by lower interest rates coupled with property price inflation and improved lending policies.