First Home Buyers Hold Over 27% Share of Property Purchases in New Zealand in March Quarter, Cotality Says
The share of first home buyers' property purchases in New Zealand in the March quarter was over 27%, buoyed by lower house prices, reduced mortgage rates, and policy measures, Cotality said in a Tuesday report.More than half of first home buyer loans over January and February were done at less than 20% equity, according to figures from the central bank.First home buyers' share of property purchases in the wider Wellington area was 37% during the period, while it was 33% in Hamilton.Mortgaged multiple property owners' share of property purchases increased back to around 24%, roughly in line with their long-term average. The shift back to 100% deductibility for interest costs supported this increase.Relocating owner-occupiers accounted for around 26% of property purchases in the first quarter, below their average of around 28%.However, the conflict in the Middle East has put an extra layer of uncertainty over a potential economic recovery, as well as the housing market outlook, the report cautioned. Property values this year may now be closer to flat, or even slightly down again, rather than a modest gain of up to 5%.