Second quarter statistics released by home loan originator ooba shows how recent home-buying trends prioritise quality of life and working from home. Properties that offer flexible accommodation that allow for separate workspaces and additional space for families spending more time at home are in demand. With home loan repayments on a R1m home loan down 24% as a result of the drop in interest rates, buyers are taking the opportunity to purchase real estate that suits their new-found needs – at a higher average price.
Other key findings of ooba’s Q2 2021 statistics include:
- Double-digit growth of 16,3% year-on-year in the average purchase price for Q2 2021 compared to Q2 2020.
- The average purchase price is at a high of R1,407,071.
- The average purchase price of first-time buyers showed a 10,9% increase for the same period, reaching an average price of R1,104,351.
- Continued competition among the major banks has translated into higher approval rates and more attractive interest rates below prime.
- Currently, 60% of first-time homebuyers acquire property without access to a deposit.
- First-time buyer activity peaked in Q3 2020 at 54% of all home loan applications received by ooba, and dropped to 48% in Q2 2021.
- 94% of homebuyers applying for home loan finance through ooba in Q2 2021 purchased homes for their own occupation.