HOUSING MARKET
AFFORDABILITY REPORT GIVES HOPE TO FIRSTHOME BUYERS “Despite interest rate rises, it’s arguably easier not harder for first-home buyers to crack into the housing market for now,” says Tim Kearins, Owner of Century 21 New Zealand. His comments follow the release
important than a lower house price
with the proposed changes to
of interest.co.nz's Home Loan
when it comes to buyers’ ability to
the Credit Contract & Consumer
Affordability Report for May.
service debt. That’s why many first-
Finance Act (CCCFA) which took
Based on the latest REINZ data,
home buyers are taking the plunge
effect on 7 July. This follows
it saw the overall median sales
now,” he says.
a major credit crunch since
price for lower quartile properties decline from $640,000 in April to $628,000 in May.
Mr Kearins says more tenants are reaching for mortgage calculators and meeting with brokers to assess
late last year with the CCCFA requiring banks to apply ultraconservative assessments on new mortgage applications.
“This means a reduction in the
their chances of securing a loan.
required deposit and a reduction in
This follows TradeMe’s latest rental
“The hoops and hurdles for first-
the amount needed to be borrowed
price index showing the national
home buyers have been many.
and repaid. While this month-to-
median weekly rent edging closer to
However, with prices for entry-level
month movement is not dramatic,
$600 – with rents up seven percent
homes softening, government
it will nonetheless help more
on a year ago.
support widening, and stringent
Kiwis realise their homeownership dreams,” says Mr Kearins.
“Also helping first-home buyers’ motivation and chances is the fact
When also factoring in the effects
that they now have greater access
of rising interest rates from April to
to government help, making it
May, the Home Loan Affordability
slightly easier to cobble together a
Report concluded first-home
deposit,” he says.
buyers were still ahead overall, albeit it marginally.
Budget 2022 saw assistance for thousands more first-home buyers.
“House prices are certainly
House price caps for the First Home
softening. At the same time the
Grant were increased and the First
Reserve Bank has indicated that
Home Loan scheme saw price caps
interest rates will continue to rise
entirely removed.
for the foreseeable future. Locking in a good interest rate can be more
The Century 21 leader says additional help will hopefully come C21 MARKET PULSE
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CENTURY 21
lending requirements lessening, homeownership for now is in reach of more Kiwis,” says Tim Kearins.
www.century21.co.nz
