First-Time Buyers Support Sluggish New Zealand Housing Market, Says Cotality

MT Newswires Live06-25 09:44

A flush of first-home buyers in New Zealand is helping keep the subdued housing market afloat, boosting purchase volumes as overall sales activity remains weak amid economic uncertainty, Cotality said Thursday.

According to Cotality's NZ Monthly Housing Chart Pack, property sales volumes declined for a fifth straight month in May, falling around 8.3%.

Only first-time buyers as a major group managed to improve numbers, rising 2.4% in the month and increasing their market share to 27.7% so far this year.

The trend appears strongest in the main centers, with first-home buyers accounting for almost 31% of purchases in Auckland and nearly 39% in Wellington.

"Lower inflation risks and a more stable interest rate outlook could help lift confidence and support a modest improvement in market activity during the second half of the year," the firm said, citing Kelvin Davidson, Cotality NZ Chief Property Economist.

The interest rate outlook is a little more settled than it seemed a few weeks ago, it added.

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Comments

  • KSKNZ2024
    06-25 10:42
    KSKNZ2024
    If bank interest rates increased then good luck for house market 
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