With property prices falling in much of New Zealand, conditions have arguably turned in favour of first home buyers.
That might be why CoreLogic analysis has found that first home buyer market share has been increasing.
First home buyers made 23% of purchases over the first half of the year and 24% in the third quarter, compared to the long-term average of 22%.
Meanwhile, the median purchase price that first home buyers needed to pay to enter the market fell from $759,000 in the first quarter to $750,000 in the second and $720,000 in the third.
First home buyers benefiting from lower prices
CoreLogic chief property economist Kelvin Davidson said that, relative to other buyer groups, there was a flicker of confidence re-emerging among first home buyers.
“We suspect some of these recent buyers had previously held back as prices fell, but have now started to see value again – maybe even some genuine ‘bargains’ – and are prepared to make a purchase even if house prices haven’t fully found the floor just yet,” he said.
Mr Davidson said first home buyers had benefited from improving housing affordability as prices have fallen, and that their growing market share reflected “their resilience and determination to get into the market”.
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