Ooba results show continues strengthening in home prices for first-time buyers

Posted by

Jul 11, 2012

The latest statistics released by ooba, South Africa's leading bond originator, show that June was the 14th consecutive month of positive year-on-year property price growth for first-time buyers, and the eighth consecutive month ooba has recorded an increase in residential property prices.

According to the June oobarometer price index, the average house price shows positive year-on-year growth of 6.1%, and a nominal month-on-month decline of 0.7%.

“This increase indicates that there is sustained demand for property, which is translating into higher property prices,” says Saul Geffen, CEO of ooba. “However, the month-on-month decline does indicate a tempering of the positive momentum.”

The average price of a house bought by a first-time buyer was R682,042 in that month, compared to R603,658 a year ago – an increase of 13%. Month on month, the growth was 5.7% on May's average first-time buyer house price of R645,458.

“For the month of June, 52% of our total intake of home loan applications was from first time buyers – up 3.8% year on year, indicating that there is continued appetite in this sector underpinned by improved access to finance.”

Further good news for first-time buyers is that while there was a slight increase in the initial bank decline ratio (1.1% higher year on year), the ratio of applications declined by one lender, granted by another shows a healthy year-on-year increase to 27.9% from 23.2%. “The year-on-year growth of applications that are initially declined but then approved by another lender highlights the benefits of using a mortgage originator to cast as wide a net as possible when applying for a home loan,” says Geffen.


The average approved bond size continued to show positive growth, up 4.5% to R733,833 from R702,438 a year ago, while the average deposit currently sits at 15% of the average house price.

The June average bank decline rate is 48.1%, down 1.1% from the prior year. The oobarometer shows that ooba's effective approval rate is up 1.4% year on year, at 65.3%. The trailing effective approval rate, which takes into account loans approved via ooba after month-end is 70.9%, meaning seven out of every 10 home loan applications are currently being approved through ooba.

The statistics also showed that 96% of home loan applications received by ooba in June were from buyers purchasing a primary residence, up from 89% in June 2009. This shows that the buy-to-let market continues to be sluggish despite the relatively cheap cost of raising financing.

Full oobarometer analysis:






Change yr on yr

(Jun 12 vs Jun 11)



Change month

on month

(Jun 12 to May 12)

Avg purchase price






Avg purchase price

of  first time buyer






Avg approved bond size







Avg deposit (as % of purchase price)










Avg age of applicant



No Change


No Change

Avg initial decline ratio

(first bank decline)







Ratio of applications declined by one lender but approved by another







Effective approval ratio








  • Property market
  • Home Loans
  • ooba
  • Bond Origination
  • first time buyers
  • Property News


  1. 1745 Mariangela 24 Jul
    Since a HELOC loan uses your home as collatoral, the terms of when the ledenr can foreclose are written in the terms of your loan.Basically, when you use anything for collateral the collateral is turned over to the ledenr (in this case your property) should you miss enough payments.The ledenr can not foreclose until the number of missed payments specified in your loan agreement.HOWEVER!!!!!! Under the law, when a ledenr makes a loan that requires collateral, foreclosure can be avoided by making a payment on the loan. It is much more difficult for a ledenr to foreclose on a HELOC.If foreclosure is threatened the best thing to do is see a lawyer. Since you live in what is called a common-law State, Arizona, the ability to foreclose is also constrained by literally hundreds of legal precedents. These precedents have the force of law.One aspect of common-law is that is more difficult for anyone to seize property. This red thread as lawyers call it literally goes back hundreds of years to medieval England. At one time Nobility could steal a commoner's land by saying they dreamed their ancestor did not sell the property and their title was a forgery. I am not joking. This is why common law when it comes to property has the protections that it does.
  2. 1744 cialis 01 Aug
    Yes it sure can be pulled from you. They may run your again near the closing and find that out. I am assuming they have run credit and not known about the 2 missed payments.If you are having trouble paying your student right now it would be best to wait until you are financially stronger in order to incur more debt.You would be well advised to have several months of savings built up before you sign a . Home prices are not going up so be patient. Same home will probably be less 12 months from now.
  3. 1743 Pharmk987 25 Aug
    Hello! gbecbbc interesting gbecbbc site! I'm really like it! Very, very gbecbbc good!
  4. 1742 Pharmg111 25 Aug
    Very nice site! [url=http://aieypxo1.com/toaass/2.html]cheap cialis[/url]
  5. 1741 Pharmd169 25 Aug
    Very nice site! cheap cialis http://aieypxo1.com/toaass/4.html
  6. 1740 Pharmk773 25 Aug
    Very nice site!
  7. 1739 viagra_dosage 28 Aug
    Hello! , , , ,
  8. 1738 price 28 Aug
    Hello! , , , , ,
  9. 1737 free_cialis 28 Aug
    Hello! , , , , ,
  10. 1736 viagra 29 Aug
    Hello! , , , ,
  11. 1735 order_viagra 30 Aug
    Hello! , , , , ,
  12. 1734 viagra 31 Aug
    Hello! , , , , ,
  13. 1733 viagra 03 Sep
    Hello! , , , ,
  14. 1732 online 03 Sep
    Hello! , , , , ,
  15. 1731 generic_viagra 04 Sep
    Hello! , , , ,
  16. 1730 cialis 04 Sep
    Hello! , , , , ,
  17. 1729 cialis 08 Sep
    Hello! , , , , ,
  18. 1728 generic_viagra 08 Sep
    Hello! , , , , ,
  19. 1727 viagra 11 Sep
    Hello! , , , , ,
  20. 1726 cialis_dosage 12 Sep
    Hello! , , , , ,


  1. RadEditor - HTML WYSIWYG Editor. MS Word-like content editing experience thanks to a rich set of formatting tools, dropdowns, dialogs, system modules and built-in spell-check.
    RadEditor's components - toolbar, content area, modes and modules
    Toolbar's wrapper 
    Content area wrapper
    RadEditor's bottom area: Design, Html and Preview modes, Statistics module and resize handle.
    It contains RadEditor's Modes/views (HTML, Design and Preview), Statistics and Resizer
    Editor Mode buttonsStatistics moduleEditor resizer
    RadEditor's Modules - special tools used to provide extra information such as Tag Inspector, Real Time HTML Viewer, Tag Properties and other.
Property Developments
Jawitz Property Developments
Current Property Developments
Renting and Property management
RELO Search

RELOHomeSearch.com is an exclusive service of the Leading Real Estate Companies of the World® real estate network.

Relo Home Search

Jawitz Properties | In South Africa
North West

Brits | Hartbeespoort 



Free State

Bloemfontein | Welkom

Eastern Cape

East LondonPort Alfred | Uitenhage

Jawitz Properties | Elsewhere




Port Louis

Terms & Conditions

Please click here to download the Terms and Conditions of this site.

Follow us on

Head Office

Office: + 27 11 880 3550
Fax: + 27 11 447 3113

Jawitz Properties
17 Bompas Road,
P O Box 52309


Click here to contact one of our offices directly.