The recovery in the housing market that started in the second half of last year is continuing.

Saul Geffen, CE of mortgage originator ooba, says the new figures indicate that the positive conditions will continue for homeowners in the second half of 2010.

ooba looks at monthly movements in house prices, the size of approved bonds and banks’ deposit requirements.

It is clear from ooba’s figures that banks have further relaxed their deposit requirements. Luthando Vutula, managing head of Absa Home Loans, recently said Absa is yet again granting 100% loans. However, these loans are selectively granted based on the profile of the user.

The oobarometer House Price Index showed that the average house price was 9,8% higher in July 2010 than in July last year. This brought the average house price to R850,763. The average buying price of first-time buyers was 8,5% higher at R591,643 than in July last year.

The average size of the mortgage loan being approved was 15,7% higher at R685,503 and the average deposit as a percentage of the buying price has fallen to 19,4% (R165,260) from 23,6% (R182,660) during last year.

Geffen says the relationship between bond applications being rejected by one bank but approved by another, improved during July to 29,4%. This relationship was 19,7% in July 2009.

Herschel Jawitz, CE of Jawitz Properties, says the current housing market still offers great value as far as prices are concerned. Although this market has turned and prices are busy rising in nominal terms, he believes it still has a longish recovery path to reach the levels experienced during the height of the boom period.

It is therefore still very much a buyers’ market.

Wayne Rubidge, regional manager of Pam Golding Properties (PGP) in the Karoo, says value for money is today a priority for most house buyers and the Karoo offers several affordable properties either as an investment option or a retirement property.

He says prices of historic houses in several towns in the Karoo are starting to rise from a low base, with exceptionally good demand in the price range under R500k.

The towns where bargains are snapped up include Petrusville, Carnavon, Kenhardt and Merweville.

The prices of houses on the cheaper side of the market range between R250k and R380k and between R1,2m and R2,5m on the more expensive side. – Elma Kloppers, Sake24

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