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.

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