While the Auckland housing market has locked out first home buyers for sometime, a number of factors have significantly changed the market in their favour. Low interest rates have been breaking records, ‘Welcome Home Loans’ are widely available, up to $20,000 could be gifted to first-home buyers through the HomeStart Grant, and more low-deposit lending is going to first-home buyers.
Homes.co.nz are now saying that market conditions are right for first-home buyers to jump in; “House prices in Auckland, our largest property market, continue to fall even as incomes across the country increase. However, the most important recent change to first-home buyers has been the continuing decrease in fixed mortgage rates. Fixed mortgage rates have been driven lower in recent months by lower long term bond rates, and have made the cost of buying a house and servicing a mortgage more manageable.”
Read the full article to learn more on why it is “as good a time as any for first-home buyers to get into the market.”