2015 Set to be a good year to buy a home
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2015 set to be a good year to buy a home
03 Feb 2015
Statistics for the fourth quarter of 2014 released by ooba, a national bond originator company, signal a positive growth for the South African property market in 2015.
“It is still a good time to gain a foothold on the South African property ladder, particularly for first-time home buyers, as interest rates are relatively low,” says Rhys Dyer, CEO of ooba.
The quarterly oobarometer shows that the property market fared well in 2014, with growth of 5.5% in the average house purchase price in the fourth quarter of 2014, compared to Q4 of 2013.
The average house purchase price reached a high of R978 502 in Q4 2014 compared to R927 381 in Q3 2013.
This is according to Rhys Dyer, CEO of ooba, who says the 2014 property price growth rate is particularly significant considering the estimated economic growth rate of only 1.4%.
“Improved lending conditions illustrated by Q4 2014’s higher approved bond size, lower average deposit and higher successful approval rates are expected to continue to positively influence the property market in 2015.”
He says they expect interest rates in the first half of 2015 to remain unchanged due to the expected drop in inflation driven by the fall in fuel and food prices.
“This will give prospective home buyers additional disposable income, positively affecting their ability to afford a home loan while keeping the property market buoyant.”
Dyer predicts improved growth in house prices in 2015 off the back of expected stronger local and international economic growth. Investor interest in the property market should partly drive this trend, with the buy-to-let market expected to show some recovery in 2015 to satisfy the increased demand for housing.
“It is still a good time to gain a foothold on the South African property ladder, particularly for first-time home buyers, as interest rates are relatively low.”
According to the oobarometer, the average age of home loan applicants is 37, with the average age of first-time applicants being 34.
Author: Rhys Dyer Ooba CEO