According to ooba Home Loans’ Q3 2024 data, first-time homebuyer activity is picking up, supported by expectations of further interest rate cuts. First-time buyers now average 35 years old, and their share of applications has risen to 51% by September 2024. With an average home purchase price of R1.155 million, demand is especially high in the Western Cape, where the average price is R1.157 million. In contrast, the Free State and Gauteng South and East regions are the most affordable for first-time buyers, with average purchase prices below R1 million.

The deposit size required has decreased by 2.9% year-on-year to R114,161 (9.9% of the average home loan), and a high loan-to-value ratio of 96.4% in the Western Cape indicates greater access for first-time buyers. While zero-deposit bonds have declined from a peak of 67.5% in 2020 to 54.7%, ooba expects lower interest rates will encourage more buyers to seek 100% bonds. Pre-qualified buyers have an approval rate of 90.5%, compared to 74.5% for those who aren’t pre-qualified.

Self-employed buyers represent a growing segment, increasing to 13.5% of applications (up from 12% in Q3 2023) and investing in more expensive properties than salaried buyers. Their applications account for 21% of total loan value, highlighting their purchasing power. Overall, home prices nationally rose by 1.7% year-on-year, with regional growth highest in the Western Cape (+7.7%) and lowest in Johannesburg North and the West Rand (+3.8%), reflecting a diverse property landscape for homebuyers.