Landlords eye exits, creating rare leverage for borrowers
First-home buyers remain the engine of the market, the latest NZHL Property Report by Tony Alexander (pictured) confirms.
“First-home buyers continue to have a dominant presence in the housing market while investors are showing no particular new surge in purchasing interest,” Alexander said.
A strong net 62% of agents are seeing more first-home buyers out looking, up from 56% two months ago and 48% a year back.
Even “during the depths of blues for the economy in the June quarter of last year, agents still reported strong numbers of young people in the market,” Alexander said.
Activity up, but no clear price surge
Market activity indicators are firm but not overheating. A net 19% of agents report more people at auctions, and a net 55% are seeing more at open homes.
However, “this month’s net 55% is almost certainly a seasonal lift rather than the commencement of a new buyer surge,” Alexander said.
On pricing, momentum is modest. Whereas a net 21% previously felt prices were rising, now “just a net 10% feel that way.”
Buyer sentiment: interest rate jitters, employment relief
The report highlights “a continuing easing of buyer worries about getting housing finance” and employment concerns “have decisively fallen over summer.” Only 33% of agents now cite employment as a worry, down from 55% in September.
In contrast, “buyers have become newly concerned about interest rates going back up again.” Agents noting interest rate worries jumped to 27% from just 2%.
Investor retreat and a buyer’s market
Investor demand remains subdued.
“New Zealand’s housing market is not being driven by any strength in investor demand – as opposed to the effect of young buyer demand,” Alexander said.
Only a net 6% of agents see more investors buying, while “a net 25% of agents have reported seeing more investors looking to sell their property.”
Overall, “a net 24% of agents say that there is a buyer’s market in place.”
For mortgage advisers, this environment favours first-home buyers and upgraders, creating strong opportunities for tailored advice, pre-approval support, and long-term relationship building.
Read the full NZHL Property Report here for more details and insights.
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