First home buyers (FHB) and investors have stepped up property market activity taking advantage of lower borrowing costs.

Cotality data shows that after a quieter period in the first three months of this year, FHBs bounced back to an almost 27% share of property purchases across the country in April.

The ability of FHBs to tap into KiwiSaver funds for part of their deposit and to access low deposit, lower interest rate lending allowances at banks were factors in the surge.

Reserve Bank of New Zealand figures show that more than two in every five FHBs took out a loan with less than a 20% deposit and that FHBs made up almost 80% of all high-LVR lending to owner-occupiers.

Since the middle of 2022 FHB activity has consistently been above its longer-term average of 21% to 22% market share as first-time buyers have taken advantage of lower property prices than at the COVID-peak. In April FHBs accounted for 29% of sales in Auckland and 27% in Christchurch.

Meanwhile, investors (including mortgaged multiple property owners), also buoyed by lower interest rates, accounted for 24% of property purchases in April, the highest share for more than three years.

Cotality data shows that total property sales activity across the country has been on a rising trend for two years and rose 4% in April, compared to a year ago. This pushed the level of sales to 7% above where it has been at this stage of the year since 2016, meaning that sales have been the strongest they have been for around 3.5 years when compared to the medium term ‘normal’.

In the three months to April median New Zealand property values increased 0.9%. Within this Christchurch and Hamilton values increased 2.1%, Auckland increased by 0.9% and Wellington values rose by 0.7%. Tauranga values fell by -0.4% and Dunedin by -0.1%.

Whether you want to buy, sell or rent a property, don’t hesitate to contact your local Raine & Horne office.