First home buyers (FHB) are seizing the opportunity presented by current market conditions, with their share of sales across Aotearoa reaching a new record high this year.

In October, FHBs accounted for nearly 28% of property purchases, the highest of any buyer category, and a level well above the long-term average of 21%, according to the latest CoreLogic report.

 Ian Keightley, Head of Operations, Raine & Horne New Zealand said FHBs have had a good run so far this year and the allure of getting a foot on the property ladder clearly remained strong for aspiring Kiwi property owners.

 “FHBs have been helped by current property values, while listings are at elevated levels and interest rates have fallen.

 “They have also taken advantage of low deposit lending options, the ability to dig into their KiwiSaver for help to fund a deposit and, unlike some other buyer groups, they are more willing to compromise on location and property type to get into the market.

 “Although it is never easy for FHBs to achieve their dream, the figures show that first timers who use the right strategy and receive the right advice from property experts like Raine & Horne are increasingly taking first steps onto the property ladder,” Ian said.

 Among the main city centres, the strongest market share for FHBs over the first nine months of 2024 has been in wider Wellington, with just under 35% of purchases made by FHBs.  In terms of historical averages, FHB sales were 7% above normal in both Hamilton and Tauranga, 5% above normal in Wellington and 4% above normal in Auckland, Christchurch, and Dunedin.  CoreLogic reported a similar margin applied in smaller cities such as Nelson and Invercargill, as well the Horowhenua, Ashburton, and South Waikato regions.

 Looking ahead, Ian Keightly said: “The outlook for FHBs appears positive. The Reserve Bank of New Zealand is widely expected to again cut its OCR rate at its meeting next week on 27 November, which would result in banks and non-banks further lowering mortgage rates and provide a tailwind to FHBs.

“As CoreLogic has noted, all signs point to FHBs continuing to hold onto an above-average share of property purchases in the next 6-9 months, given other groups including investors are still facing challenges.”

Whether you want to sell buy or rent a property, don’t hesitate to contact your local Raine & Horne office.