Flat prices, high stock leave homebuyers firmly in control
Homebuyers’ biggest barrier to entering the market is fear, not fundamentals, according to the Finance and Mortgage Advisers Association of New Zealand (FAMNZ), which says conditions are the most favourable in more than a decade.
New figures from NZHL and Cotality NZ back that up, showing buyer sentiment strengthening while prices remain flat and listings elevated.
Confidence surge a ‘welcome’ sign for aspiring buyers
FAMNZ managing director Peter White (pictured) said the latest ABS Housing Confidence Survey should be welcome news to aspiring homeowners.
“Often the only thing holding back first-home buyers from taking the plunge into ownership is a feeling of fear and uncertainty,” White said. “But this fear can come at a significant financial cost later in life if you miss out on the opportunity to amass personal wealth through property.
“Aspiring buyers should be taking advantage of today’s favourable market conditions because buying conditions haven’t been this good for more than a decade.
“The ABS survey shows buyer sentiment at its highest level in 15 years, so now is the time for aspiring owners to get into the housing market.”
The latest NZHL Property Report by Tony Alexander shows first-home buyers remain the main source of demand, finance worries are easing, and a net 27% of agents still see a buyers’ market, even as prices edge up and sentiment shifts from FOOP to FOMO.
Cotality NZ’s Home Value Index echoes this, with national values flat in November and still about 17% below the early 2022 peak. Chief property economist Kelvin Davidson describes the market as a “holding pattern”, with elevated stock keeping buyers “in the box-seat” even as fundamentals tilt towards price growth next year.
For advisers, that mix of flat prices, high listings, rising FOMO and easier finance is a prime opportunity to re‑engage hesitant clients.
Do your homework – then talk to an adviser
White urged would‑be buyers to prepare carefully, then seek professional mortgage advice to make the most of the current buyers’ market.
“Mortgage advisers can help borrowers access a far wider range of products than major banks – products specifically suited to their own unique circumstances,” he said.
With FOOP receding, interest rate worries muted, and first‑home buyers still dominating demand, advisers are well‑placed to shift conversations away from fear and hesitation and towards structuring sustainable long‑term lending solutions that take advantage of today’s conditions.
Buyers’ market may not last
With sentiment and fundamentals still aligned in buyers’ favour, FAMNZ is warning that the window of opportunity may narrow as the cycle turns.
“Market conditions frequently change and could become less favourable in future, so take advantage of the buyers’ market that now exists," White said.
“You shouldn’t fear entering the housing market – if you enter the market now and start building equity it will benefit you and your family in the long run."
For mortgage advisers, that message underlines the importance of proactive outreach: helping clients understand that while the market is firming, today’s buyer‑friendly settings – from flat prices and ample listings to easier finance and resurgent FOMO – may not last forever.
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