Real estate firm sees “favourable conditions” boosting the market this summer

Firm urges first-home buyers to “do their sums” and consider entering the market

Real estate firm sees “favourable conditions” boosting the market this summer

Real estate firm Century 21 New Zealand said that favourable conditions may boost the property market this summer, making it the best time for first-home buyers to enter the market and for homeowners to climb the property ladder.

Derryn Mayne, owner of Century 21 NZ, said that the Reserve Bank of New Zealand (RBNZ) may not have dropped the official cash rate (OCR) any further, but it still gave the local real estate market a good “shot in the arm.”

She also said that the housing reset resulted in new government-backed schemes meant to help first-home buyers, including offering lower deposit requirements with the potential to purchase with only a 5% deposit.

“Add that to the wider eligibility which was also part of the housing reset, plus record low interest rates, and I think more first-home buyers will discover they can purchase earlier than they’d possibly planned,” she said. “This may see the market perform much better than some had expected this summer.”

Read more: Real estate boss says OCR has given the market a ‘good shot in the arm’

Mayne urged first-home buyers to do their sums and seek professional advice on what their rent payments are compared to the cost and commitments of servicing a mortgage.

“If you’re thinking of buying in the next year or two then you should talk to a mortgage broker now. Buyers need a plan,” she said. “Even if you know you’re not able to buy today, a mortgage broker can help you plan where you need to be and how to get there.”

RELATED ARTICLES