Friday Jul 16, 2010
Property prices rise despite rise in mortgage declines
The average house price rose 6.8 percent year-on-year in June to R837,599 from R784,427 a year earlier.
The growth in the average purchase price amongst first-time buyers remained strong, with year-on-year growth of 12.1 percent in June.
According to the mortgage company ooba, the average approved bond size increased 14.3 percent year-on-year in June to R695,381, compared with R608,316 a year earlier.
The average deposit as a percentage of purchase price fell 24.4 percent year-on-year to R142,218, equivalent to an average deposit of 17 percent of the purchase price.
The average ratio of bonds declined increased marginally in June, up 1.3 percent year-on-year to 48.8 percent from 47.5 percent a year earlier, due to the higher proportion of 100 percent loans in June. On a month-on-month basis the decline ratio fell 4.1 percent to 48.8 percent from 52.9 percent in May.
The ratio of applications declined by one lender, but approved by another, increased 7.5 percent year-on-year to 24.8 percent.
"This is good news for homebuyers, as it indicates a higher probability of loan approval from another bank even if initially declined," ooba spokesman Saul Geffen said.
General sentiment had no doubt been enhanced by the successful hosting of the World Cup.
"Overall, the signs remain positive for the housing market, although we expect price growth to continue at a slightly slower pace in the second half of the year."
Sapa
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