First home buyers activity up while investor home loans drop again

Property Institute of New Zealand releases latest regional insights report

First home buyers activity up while investor home loans drop again

First home buyers are making up an increasing share of the Kiwi market, according to the latest Property Institute / Valocity Regional Insights Report.

The report shows new mortgage registrations for first home buyers increased by 4.5% year-on-year, which accounted for 28.4% of the market. Meanwhile, the number of new mortgage registrations for investors has continued its negative trend, now down 2.5% annually, currently 16.9% of the market. Additionally, refinancers were up 16% at 23.6% of mortgage registrations, suggesting more people have been taking advantage of the low-interest rates.

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The national median sale price is viewed to have remained very stable over the past year, currently sitting at $535,000. Over half of New Zealand’s housing stock is currently valued at more than $600,000, while sales volumes remain down when compared to the same period last year.

In Wellington, the median sale price is currently $638,750 with an annual change of 9.2%. Refinancers were up 3.5%, occupying a 24% share. Mortgage registrations for first home buyers remain the strongest representing 33.1% share.

In Auckland, the median sale price is currently $830,000, down 4.6% annually. First home buyers remain a strong contender in the market, with mortgage registrations up 7.9% annually, occupying a 27.1% share.

In Hamilton, the median sale price is at $540,000 down by 0.3% annually. Refinancers occupy 27.2% of share, up by 37.7% year-on-year. First home buyers maintain a similar share of new mortgage registrations, currently at 27.3%.

In Christchurch, the median sales price is at $450,000 up 2.3% from a year ago. It is viewed to continue to appeal to first home buyers, currently representing 31.6% of new mortgage registrations.

In Dunedin, the median sale price is currently $415,000 with an annual growth of 10.4%. The affordability of the region seems to appeal to first home buyers and investors, with new mortgage registration up over 12% for both buyer types.

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