FHB wave building across NZ
High inventory, steady interest rates and subdued price growth are combining to create one of the most buyer-friendly markets in recent years – and according to advisers, first-home buyers are starting to move.
With property values broadly flat and listings remaining high, advisers say momentum is building among well-prepared buyers, particularly renters looking to escape uncertainty around costs and the changing rules impacting landlords. These include compliance with Healthy Homes Standards and the phased reintroduction of mortgage interest deductibility.
Elyce Peters, head adviser and founder at The Mortgage Girls, said the current environment is pushing more first-home hopefuls to take action.
“Despite recent easing in rent inflation, there’s a noticeable sense of urgency among first-home buyers. Many are recognising that conditions right now – with softer prices, improved listings, and a more balanced playing field – represent one of the better entry points we’ve seen in years,” Peters said.
“We're seeing renters who might have waited in past markets now keen to act, and it's incredibly rewarding to help so many take those first steps into homeownership.”
These trends follow recent Cotality data that showed a modest dip in property values in May, and offered muted projections for growth over the remainder of 2025. The Reserve Bank’s latest OCR decision has led to a wave of fresh (albeit modest) mortgage rate cuts, providing some solid options for buyers weighing up fixed-rate strategies.
That clarity is translating to more risk-on decisions from borrowers who’ve already weathered the rate hike cycle. Peters said some existing clients are now opting for shorter fixed terms across their entire lending.
“Interestingly, we’re also seeing different behaviour from many of our existing clients who’ve already experienced the higher rate cycle,” she said.
“Having become accustomed to elevated repayments, a growing number are now more comfortable taking on additional risk – choosing six-month fixed terms across their full lending, aiming to benefit from potential rate drops as they flow through.”
Meanwhile, inventory remains high across many parts of the country. REINZ’s April data showed that inventory levels increased by 6.2% year-on-year nationwide to 35,924 properties for sale. REINZ acting chief executive Rowan Dixon also noted that property sales had increased – however, the high inventory means negotiations are tilted in the buyer’s favour.
“Real estate professionals report that buyers are seeking properties at lower price points, and they are willing to explore alternative options if they view prices as being excessively high,” Dixon said.
For advisers, there is plenty of opportunity in the first-time buyer market. David Cunningham, CEO of Squirrel, said conditional offers remain a smart route in today’s market, particularly when paired with advice from a broker.
““Pre-approvals are a bit of a pain,” Cunningham said. “The best thing to do is work with a mortgage adviser (or directly with a bank) so you find out how much you can probably borrow. That sets the parameters for ‘going shopping’.
“When the FHB is ready to make an offer, make it conditional on finance (and insurance) and then get the firm approval,” he said.
“Given that the property market is pretty weak and there’s lots of stock on the market, most vendors will be happy with conditional offers. It’s when the market is hot that offers conditional on finance can go to the bottom of the list for a vendor.”
That view is backed up by Tony Mounce, director at Tony Mounce Mortgages, who said that the flexibility is proving particularly valuable for first-home buyers, who often rely on conditional offers to navigate finance approvals, insurance, and property due diligence.
In a competitive market, such conditions can see offers pushed to the bottom of the pile, but with more stock available and less buyer urgency, vendors are increasingly open to negotiation.
“It makes things easier because you can negotiate a standard conditional contract,” Mounce said. “Options in a low-inventory market aren’t a good thing for first home buyers, because you might have to get a $1,000 valuation and not end up getting the property. Having a good level of inventory gives the first-home buyers a bit of an edge.”
