More strong growth out of Wellington as first home buyers continue to outpace investors with a new record share of 32% of home purchases.
QV House Price index hit another high in Wellington with average value of housing stock in the region now at $595,501.
Every other market in New Zealand is dominated by investors who had 39% of new purchases nationwide in March.
Porirua and the Hutt are by far the strongest areas for first home buyers with plenty of properties within the 450k purchase price cap for Welcome home loans and Kiwisaver homestart grants.
Wellington mayor Justin Lester has recently announced plans to increase housing stock in the city with a $5000 rates discount for new first homes and apartments as well as a fast-tracked consent process. There are almost 1000 new apartments set to come on the market next year in just two blocks in the CBD
In terms of lending there are still bank options out there for owner-occupiers with 10% deposit but discounted rates and cash back offers are much leaner than they have been in recent years.
For investors pricing is a lot tighter for non-main bank customers however the likes of Resimac and Liberty can lend to investors in some cases with 20% deposits.
REINZ – Actual Sales March 2017
Corelogic – QV House Price Index