Is Now the Right Time for First-Time Buyers to Enter the Housing Market?
With winter nearing its end, mortgage rates being reduced by some banks, and credit becoming easier to access, first-time buyers might be wondering if now is the time to step into the housing market.
Alexia Stoddart of Tommy’s Real Estate believes it’s a great time to jump into the market.
She notes that there is currently a good selection of properties available, and the recent changes to the loan-to-value ratio offer banks more flexibility, which could mean potential buyers are able to borrow more. Fellow agent Chris Robinson adds that the current market sentiment suggests that interest rates are more likely to decrease rather than rise, which is helping build buyer confidence. If you can secure lending, now could be a good time to purchase a home.
However, it’s important to note that stock levels are currently on the lower side, with around a 20 per cent reduction in available properties since the start of the year, meaning there are fewer options to choose from. Despite this, property prices aren’t at an all-time high, and with more positive talk about market improvement and potential interest rate reductions, this could be the ideal time to secure a first home before we see an upswing in the market. Should interest rates begin to drop, it’s likely that buyer competition will increase, potentially driving prices upward, making now a potentially strategic moment to take the leap.
There are additional signs that the market is beginning to pick up. Tommy’s Real Estate has observed a steady increase in attendance at open homes over the past few weeks. While there was a quiet period following the government’s announcement on job cuts, but that has now turned a corner and activity is on the rise. As the weather warms, more homeowners are preparing to list their properties, offering buyers a wider range of options. Spring’s arrival brings not only more homes on the market but also enhances their appeal spring blooms and lush greenery, making properties more attractive to potential buyers.
The onset of spring typically ushers in increased buyer activity, as families look to move before summer and new buyers enter the market after the winter lull. The milder temperatures and longer daylight hours also make it easier to schedule and conduct viewings and open homes.
When it comes to demand in Wellington, certain areas are standing out. Island Bay has emerged as a particularly popular area, being one of the top searches on Trade Me nationwide. Suburbs close to the city, such as Brooklyn, Northland, and Kelburn, also remain highly sought after, while the eastern suburbs, especially Miramar, continue to be a favoured choice among buyers. Chris adds that Island Bay’s appeal lies in its easy access to the CBD, proximity to the airport, and strong community vibe, making it attractive to first-home buyers, families, and professionals alike.
Across the Wellington region, demand is strong, particularly within the first-home buyer range. The city fringe suburbs remain popular, as do the vibrant eastern and southern suburbs. Chris suggests that now is a good time to sell, with less stock on the market meaning fewer choices for buyers, which could lead to increased interest in your property. As we move into spring and summer, it’s likely that more listings will become available.
While spring has traditionally been a favourable time to sell, Alexia emphasises that the best time is when you are ready. There are serious buyers in the market who have their pre-approvals in place and are ready to act on a property that meets their needs. Buyers are also keen to be settled into their new homes before Christmas, which, while it may seem far off, is just around the corner.
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