House prices up 5.6% in April

House prices rose 5.6% last month compared with same period a year ago, according to bond originator, ooba.

Average house prices rose to R870,070 from R823 483 a year earlier, the sixth consecutive month of positive year-on-year house price growth. 

In addition to this growth, the average purchase price of the first-time buyer continued its upward trajectory, showing an annualised growth of 8.2% to R676,837, from R625,252 last year. 

Ooba chief executive Saul Geffen said the growth in the first-time buyer purchase price seemed to be supported by sustained first-time buyer activity. 

He said 50.9% of the applications during the month consisted of first-time buyers. This is in comparison to the 47.7% recorded in March. "April was also the twelfth consecutive month of positive year-on-year property price growth for first-time buyers." 

The average approved home loan size showed an annualised increase of 3.5% and a month-on-month increase of 1.3%. 

Geffen said the consistent property price growth and the improved bank approval rates suggested improved confidence in the property market, and this sentiment was underpinned by higher home loan approval rates. 

The ratio of applications declined by one lender but granted by another for April 2012 showed a significant year-on-year increase to 26.7% of all declined deals.