(from Property Trader)

According to mortgage originator ooba, the average house price rose 6,8% year-on-year in June to R837 599 (from R784 427 in June 2009), and the outlook for the SA residential property market remains positive.

“House prices are continuing to increase, albeit at a slower pace than in the past few months,” says ooba CEO Saul Geffen “We have seen a sharp recovery in house prices during the first half of this year and we are still seeing an easing in lending criteria, which is good news for potential homebuyers and the property market in general."

The ooba statistics also show that as a percentage of purchase price, the average deposit paid by home buyers has dropped from 22,5% of the price to 17% in the past year, and that the average approved bond size has increased 14,3% yoy to R695 381.

Nevertheless, the average bond decline ratio is still sitting at just under half of all applications (48,8% in June), the originator says.

Read more »

http://www.overberg.biz/

INTERNATIONAL

- The key June US unemployment report being released today is expected to show a decline in non-farm payrolls of 110,000 as many temporary workers are laid off following completion of the US census.

- Weekly new claims for US jobless benefits increased from 459,000 to 472,000 exceeding the consensus forecast 455,000.

- The US Institute of Supply Management (ISM) manufacturing index dropped more than expected in June to 56.2 from 59.7 in May and below the consensus forecast 59.0. A steep drop in the price component suggests the Fed may delay raising interest rates.

- Contracts for pending US home sales fell 30 % in May, twice the drop expected following expiry of a tax credit for 1st time buyers.

- After rising for 3 consecutive months the Conference Board’s US consumer confidence index fell significantly more than expected in June to 52.0 from 62.7 in May, attributed to uncertainty over the future state of the economy and the labour market.

- The S&P/ Case Shiller home price index unexpectedly increased 0.4 % in April against a 0.1 % consensus forecast decline and a downwardly revised 0.2 % decline in March.

- The yield on the 10-year US Treasury bond fell to 2.88 %, its lowest since April 2009, having been as high as 4 % as little as 8 weeks ago.

- The yield on the 2-year Treasury note fell below the equivalent German bund yield for the 1st time since March, coinciding with a strong 2 % euro appreciation against the US dollar on Thursday to $1.254. The rate was as low as $1.185 just 4 weeks ago.

Read more »