The oobarometer price index revealed that the average house price rose 6.8% year-on-year in June to R837 599 from R784 427 a year earlier. "House prices are continuing to increase, albeit at a slower pace than in the past few months," says Saul Geffen at ooba. "We have seen a sharp recovery in house prices for the first half of this year with three months of double digit year-on-year house price growth between February and May."

Meanwhile, the growth in the average purchase price amongst first time buyers remains strong, with year-on-year growth of 12.1% in June.

According to other indicators tracked by ooba, the average approved bond size increased 14.3% year on year in June to R695 381, compared with R608 316 a year earlier. The average deposit as a percentage of purchase price fell 24.4% year-on-year to R142 218, equivalent to an average deposit of 17.0% of the purchase price.

"We are seeing a continued easing in lending criteria, which is good news for potential homebuyers and the property market in general."

The average decline ratio increased marginally in June, up 1.3% year-on-year to 48.8% from 47.5% a year earlier, due to the higher proportion of 100% loans in June. However, on a month-on-month basis the decline ratio fell 4.1% to 48.8% from 52.9% in May.

The ratio of applications declined by one lender but approved by another increased 7.5% year on year to 24.8%. "This is good news for homebuyers, as it indicates a higher probability of loan approval from another bank even if initially declined. It also demonstrates the importance of shopping around in securing home loan approval.

"General sentiment has no doubt been enhanced by the successful hosting of the World Cup. Overall, the signs remain positive for the housing market, although we expect price growth to continue at a slightly slower pace in the second half of the year."

Full oobarometer analysis:

Indicator	June 2010	June 2009	Change yr on yr (June 10 vs June 09)	May 2010	Change month on month (June 10 to May 10)
Avg purchase price	R 837,599	R 784,427	6.8%	R 872,038	-4.0%
Avg purchase price of  first time buyer	R 611,611	R 545,515	12.1%	R 604,857	1.1%
Avg approved bond size	< p align="center">R695,381	< p align="center">R 608,316	14.3%	R 716,862	-3.0%
Avg deposit (as % of purchase price)	17.0% (R 142,218)	22.5% (R 176,111)	-24.4%	17.8% (R155,221)	-4.5%
Avg age of applicant	37	36	1 year older	37	No change
Avg decline ratio	48.8%	47.5%	1.3%	52.9%	-4.1%
Ratio of applications declined by one lender but approved by another	24.8%	17.3%	7.5% decrease	16.2%	8.6

According to the poll, 27% of respondents believe that a 100% bond is reasonable, while 42% said a deposit of 10% was reasonable. 12% of respondents said they believe a deposit of more than 30% was reasonable.

However, according to Craig Deats at ooba, while all banks have again started offering 100% home loans, being able to put down a deposit does make it more likely that your bond application will be approved.

"In the last few months, we have seen a significant increase in applications with low or no deposit. Although it is possible to have your home loan application approved on this basis, it is less likely as the introduction of the National Credit Act (NCA) has resulted in more stringent lending criteria than was applied in the past."

Deats says that currently, the two major reasons for bond declines are having insufficient net disposable income to afford the bond repayments and a poor credit profile.

He adds that besides improving your chances of getting your home loan approved, a bigger deposit could result in a more favourable bond rate which will save you in interest over the term of the loan. "As a home loan is paid back over a long period, generally between 20 and 25 years, even a small deduction in the interest rate on your bond, can save you thousands in interest payments over time."

Finally, he says that some sellers are also more willing to accept an offer if the buyer has a deposit, as there is a higher likelihood that they will complete on a sale.

The most notable of these trends is that the percentage of White applicants has been consistently less than the combined total of Black and Coloured applicants over the last three years.

According to ooba, the proportion of Black applicants has risen steadily over the last few years, averaging 42% during 2009. However, this percentage has dipped in the first four months of 2010 to 38%.

In contrast, the proportion of White applicants has risen from an average of 43% in 2009 to 47% during the first four months of 2010. The proportion of Asian and Coloured applicants has remained constant since the beginning of 2008, averaging 8% and 7% respectively.

According to ooba CEO, Saul Geffen, the downward trend in the percentage of Black applicants in 2010 can likely be attributed to the fact that the tough economic conditions and stricter lending criteria have had a bigger impact on potential buyers at the lower end of the property price spectrum.

The ooba data shows that potential Black buyers make up 60-70% of total applicants for properties valued at less than R500 000. This proportion drops significantly to around 30% for properties valued at between R500 000 and R1 million, and 10-20% for properties valued at over R1 million.

"The stricter bank lending criteria imposed under the NCA has also made it particularly tough for first time home buyers who aren¿t able to meet the affordability criteria."

However, Geffen says that as the economy recovers, the percentage of Black buyers will likely re-commence its upward trend. "We expect to see an increasing percentage of Black buyers in line with the shifting economic base in South Africa."