We’ve got some fantastic news to share – first home buyers are making a strong comeback in the real estate market! After facing challenges in recent times, they’re now taking bold steps towards achieving their homeownership dreams. In this article, we’ll explore the factors driving this resurgence and offer insights into why this is an opportune moment for first home buyers to make their move.
First home buyers are flexing their muscles as demand for affordable housing rises steadily. This surge in interest is attributed to a growing shortage of budget-friendly homes and an upswing in net migration. Real estate agents across the country are witnessing a notable rise in first-time buyers attending open houses. Furthermore, Auckland’s auction clearance rates are providing early indications of an upward trend, signalling a promising revival in the market.
Buyers are feeling more optimistic about the market, and that fear of overpaying (FOOP) is becoming a thing of the past. Instead, they’re concerned about missing out on favourable opportunities. Economist Tony Alexander’s recent survey reflects this trend, showing a noticeable decrease in apprehensions over falling property prices. The new vibe is all about seizing the right moment to enter the property market, buoyed by increasing confidence and a sense of excitement.
As the landscape evolves, property investors are eyeing potential openings in the market. The upcoming elections and proposed legislative changes have sparked renewed interest among investors. A potential shift in government could lead to increased competition, which, combined with legislative modifications, might lead to a boost in property prices. National’s plans to reinstate tax advantages for investors and shorten the bright-line test period are creating anticipation and could drive further activity in the market.
In the realm of finance, some comforting news awaits. The Reserve Bank of New Zealand (RBNZ) has indicated that they do not foresee the official cash rate (OCR) surpassing 5.5 percent. While the OCR experienced a 25 basis point increase in May 2023, it appears that rates might stabilise, with the possibility of future reductions. Such a favourable interest rate environment is a strong incentive for first home buyers to take the leap and secure a property sooner rather than later.
It’s an exciting time for first home buyers as they make a notable comeback in the New Zealand housing market. Fuelled by increased demand, growing confidence, and attractive prospects, they are taking advantage of a favourable environment to realise their homeownership dreams. This resurgence, coupled with the RBNZ’s indications of stable or potentially reduced interest rates, creates an opportune moment for aspiring homeowners to make their move.
As industry professionals, we understand the importance of expert guidance on this journey. If you’re a first home buyer looking to capitalise on this encouraging market trend, our team of mortgage advisers is here to offer personalised support tailored to your unique situation. Contact us today to work together and make your homeownership dreams a reality!
Disclaimer: We want to emphasise that the content presented in this article serves as a general overview and is intended solely for informational purposes. Although we take great care to ensure accuracy and reliability, it’s important to remember that information is subject to constant changes and may not reflect the latest developments or cater to your specific circumstances. Therefore, before making any decisions based on the content herein, we urge you to exercise your judgment and seek independent advice. Your unique situation may warrant personalised guidance to make well-informed choices.