First-time home buyers ‘spend more’

2012-02-15 14:41

First-time home owners are spending more on a property than they did a year ago.

“The average purchase price amongst first time buyers continues to show a significant year-on-year increase of 12.8% to R650 574, from R576 675 a year earlier,” bond originator ooba said in a statement.

Saul Geffen, CEO of ooba, said there had been consistent year-on-year price growth for first time buyers each month since May 2011.

In January 2012, 51%of the applications received by ooba were for first time buyers, compared to 48% in January 2011.

The January “oobarometer” price index shows that the average house price rose to R850 589 from R797 011 a year earlier. Property prices in January showed year-on-year growth of 6.7%.

“This growth is the highest year-on-year price increase since July 2010, when a year-on-year price appreciation of 9.8% was recorded.”

Ooba’s volume of home loan applications was 41% higher in January than the same month last year.

The average approved home loan amount grew 6.3% year-on-year in January to R722 900, from R680 195. The average deposit as a percentage of purchase price increased by 2.7% year-on-year to R127 689.

This was equivalent to an average deposit of 15% of the purchase price, Geffen said.

The initial bank decline ratio increased by 4.3% year-on-year to 50.3%.

The effective approval ratio showed a year-on-year decrease of 5.6% to 60%.

The ratio of applications declined by one lender but granted by another showed a year-on-year decrease of 4.7%, ooba said.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/News

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.