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Source: ONE News -
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First home buyers appear to be the driving force behind the residential real estate market in New Zealand, according to new research released this morning by BNZ.
The survey, conducted by BNZ Banking Group with the Real Estate Institute of New Zealand, canvassed more than 10,000 licensed real estate agents.
Some 29% of real estate agents reporting first home buyers are prevalent in the market.
BNZ chief economist Tony Alexander said first home buyers nationwide were probably responding to the lower level of interest rates at the moment.
"Since we went into recession in 2008, a lot of young people who may have left home and gone out on their own otherwise have not done so. Maybe they have been living at home, have now built up a deposit and are certainly sick of living with their parents," Alexander said.
"I think we are seeing the first wave of those young first home buyers coming onto the market. I think these are the canny ones, whereas next year we'll see a lot more frustrated first home buyers coming forward."
As the labour market improves, Alexander said he would expect to see another stronger wave of first home buyers coming through.
Sellers generally seemed more motivated than buyers in November, according to the feedback real estate agents gave in the survey.
Because prices properties are selling for have been rising, people who are looking to sell their houses appear unwilling to take a discount on the asking price.
Real estate agents said open home attendance was flat in November on the number of people going through open homes in October.
"Buyers may have been sitting on their hands somewhat in November. I do read that as buyers maybe getting a little bit distracted by the election because it was a little bit in contrast with previous months. To me, it's not a signal of a change in buyer behaviour," Alexander said, adding that there was a strong number of written sales going through to become unconditional.
"Buyers are not backing away. They are strongly committed when they do initially put pen to paper."
