February statistics from ooba show continued growth
The latest statistics from ooba indicate that property prices continue to show positive growth. ooba’s average purchase price recorded for February was R958 048 – a healthy 5.4% year-on-year increase and a month-on-month increase of 0.2%.
The average approved bond size was also 3.7% higher year-on-year and 1.2% higher month-on-month at R811 299. The average purchase price for first-time buyers also showed positive year-on-year growth of 4.2% to R728 125. The average approved bond size for first-time buyers was R656 321, which is 2% higher year-on-year. In February, 52% of ooba’s total bond applications were from first-time buyers.
The average deposit recorded by ooba in February was R146 749 or 15.3% of the purchase price. This represents a decrease of 5.6% month-on-month, indicating a greater willingness from lenders to lend at higher loan to value.
“All of these metrics show continued positive growth in the property market, as the result of a combination of lender and buyer confidence,” says Rhys Dyer, ooba CEO.
The initial bank decline ratio at 45.3% is up year-on-year by 1.7% and up month-on-month by 0.6%. On the other hand, the ratio of applications declined by one lender, granted by another at 29.9%, shows a year-on-year increase of 1.2%. Taken together, these metrics amount to ooba’s trailing effective approval rate for February sitting at 73%.
“This shows that ooba is securing approvals for more than seven out of 10 of the home loans that it processes,” says Dyer. “It highlights the benefits that ooba offers homebuyers by being able to submit their home loan applications to multiple lenders, thus ensuring a significantly better chance of competitive approval.”