Property Institute of New Zealand releases latest regional insights report
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.
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.