Finance Matters

12/05/2026

First home buyers continue leaping into the housing and mortgage markets - TMM Online https://buff.ly/v8NcbYT

The latest Cotality-Westpac First Home Buyer report shows they’ve bought 24,800 homes over 12 months to the end of the first quarter of this year – the highest annual total since the third quarter of 2021, near the market peak.

They made up 27.5% of all property purchases, just shy of the record 28.2% share at the end of last year.

This strength of first home buyers is right across the country, with market shares running above long-term averages since 2005.

For example, across the wider Wellington area, first home buyers account for 37% of activity, about 8% above the average. Hamilton has also been strong, alongside Napier, Gisborne, South Waikato and Waikato districts.

For those looking to get into their first home, lower mortgage rates have made it much easier to get a foot on the property ladder.

In most parts of the country (excluding Auckland), minimum mortgage payments are now about $130/month lower than they were this time last year, and they’re a whopping $820/month lower than they were back in 2024.

In Auckland, where first home prices tend to be much higher, the fall in mortgage costs has been even larger.

Minimum mortgage payments are now around $180/month lower than they were this time last year, and they’re around $1,100/month lower than they were back in 2024.

First home buyers have had to pay a little more for a home, though with a median price of $720,000 which is just $20,000 less than the first quarter of 2022’s peak of $740,000.

First home buyers are also getting more active across the value spectrum, the report says. For example, in the middle 40% of the market by value, their share rose from just 21% in 2015 to almost 29% in 2025 and a little higher over the first quarter of this year.

More than half of first home buyer loans are done at less than a 20% deposit and Westpac’s lending records show a recent average LVR if 81%, up from less than 77% in 2024.

The average age of first home buyers has also dropped slightly, with an average of 35 over the past year, down from a typical age of 36 in 2024.

06/05/2026

First‑home buyers take lead in softer NZ property market https://buff.ly/Kz1DNS5

First‑home buyers remain key demand engine
Despite the softer backdrop, Alexander notes that “first-home buyers continue purchasing”. In the April survey, a net 26% of agents reported more first‑home buyers in their area, making this cohort one of the few bright spots since the turnover recovery began in early 2023. Many are using accumulated deposits, lower prices, and better credit availability to enter the market, even as higher mortgage rates cap how far they can stretch.

NZBA lending data back this up. In the six months to December, total new home lending rose 17.5%, with 70,811 new loans written and 24.4% going to first‑home buyers.

Investors retreat as buyer’s market deepens
By contrast, property investors are stepping back. A net 50% of agents say they are seeing fewer investors in the market, while a net 27% report more investors bringing stock to sell than three months ago. Higher holding costs, softer capital‑gain expectations, and tax uncertainty all appear to be biting.

Survey responses underline just how cautious this group has become: 58% of agents say “nothing is motivating investors to make a purchase”, with only a minority citing bargain‑hunting.

Alexander concludes, “We are solidly in a buyer’s market,” with a net 45% of agents judging vendors to be the more motivated party in negotiations.

05/05/2026

Auckland market steadies as ‘quiet confidence’ returns https://buff.ly/yX0zgub

Auckland’s residential market tracked a familiar seasonal pattern in April, with softer activity but underlying signs of stability.

“April is often a difficult month to read clearly, and this year is no exception,” Barfoot & Thompson managing director Peter Thompson (pictured) said in a media release, citing the impact of school holidays, Easter, and Anzac Day on sales.

Average prices eased from March’s peak, but the April average of $1,131,246 was still slightly higher than a year earlier, while the median of $955,250 sat 2.3% above April 2025 despite a month‑on‑month fall.

Thompson said the agency is “seeing some monthly movement, however both measures indicate pricing remains relatively steady overall, with short-term variation expected at this time of year.”

Sales volumes dropped to 688 in April, down from 1,262 in March and below the same month last year, broadly in line with traditional autumn slowing.

Listings surge gives buyers more choice
One standout for April was supply. New listings climbed to 1,744 – the highest April level in more than a decade – pushing total available stock to 6,356 homes, slightly above a year earlier and giving active buyers more options across price brackets.

Transactions under $750,000 made up 22% of sales, while 6.4% were above $2 million, signalling activity at both ends of the market as well as the mid‑range family segment.

Rural and lifestyle property across Northland and Greater Auckland also remained firm, with more than $50 million of sales and the busiest April in five years.

28/04/2026

First‑home buyers drive lending rebound as borrowers stay ahead on repayments

New Zealand’s home loan market ended 2025 on a stronger footing, with first‑home buyers firmly in the mix and many borrowers getting ahead on their mortgages, according to the New Zealand Banking Association’s latest retail banking insights.

Total new home lending in the six months to December rose 17.5% compared with the first half of the year, with 70,811 new home loans written, up from 60,249. Almost a quarter of these – 24.4% – went to first‑home buyers, a similar share to the previous six months, even as the average first‑home buyer loan size climbed 3.4% to $524,850.

NZBA chief executive Roger Beaumont said the figures challenge the idea that new entrants are locked out.

“A few years ago, first-home buyers were widely reported as being locked out of the housing market. It’s encouraging to see first-home buyers taking advantage of the current housing market and cheaper loans compared to the post‑COVID highs,” Beaumont said.

The average value of all new home loans edged down 3% to $392,519, suggesting some buyers are targeting more affordable stock or trimming borrowing capacity as mortgage rates sit higher than pre‑COVID levels.

More borrowers ahead on repayments, arrears contained
The NZBA data also point to improving household buffers. By the end of 2025, 42.9% of home loan customers were paying more than the minimum required, up from 40.3% in the prior period, while just 1.4% were behind on repayments, broadly unchanged.

Beaumont said this illustrates a solid level of money management.

“The fact that over 40% of people with a home loan are ahead on their repayments shows a high level of financial capability among New Zealand homeowners. Managing your money well, especially during a time of economic challenges, is a great skill to have,” he said.

Banks granted hardship status to 6,158 customers over the half, an 8.3% decline, even as applications rose modestly. That suggests proactive support and refinancing options are still in play for stressed borrowers.

Fixed‑rate tilt and digital shift reshape broker conversations
Rate‑mix data underline a clear preference for certainty. At December, 60.7% of home loans were on fixed rates only, 17.7% on variable and 21.6% on a mix. Nearly 18% of loans moved from variable to fixed over the half, a shift Beaumont said “may reflect a recognition that interest rates were becoming less likely to fall further as economic conditions changed.”

At the same time, nearly 80% of bank customers are now registered for online or mobile banking, with just 1.7% of all transactions going through ATMs.

21/04/2026

Middle East turmoil deepens rate dilemma for New Zealand

New Zealand’s economic outlook has grown murkier as the Middle East conflict sends oil prices higher and businesses and households pull back on spending, according to fresh analysis from Kiwibank and ASB.

Both banks highlight how repeated closures of the Strait of Hormuz and whiplash in ceasefire talks are fuelling market volatility just as key local indicators land.

Kiwibank economists Jarrod Kerr and Alexandra Turcu note that Kiwi firms and households have largely absorbed surging transport costs in the midst of a cost‑of‑living squeeze, draining savings and profit margins. They argue that New Zealand is unlikely to bounce back quickly from the shock, saying “we aren’t expecting a swift rebound, but more likely an achingly slow recovery once the war is over.”

ASB’s latest Economic Weekly makes a similar point, warning that “Uncertainty is economic paralysis.” In practice, the bank says businesses and consumers are taking longer to commit to major spending, lifting investment hurdles and dampening growth even before any full fuel‑supply disruption is felt.

Inflation pressure rises as growth softens
Both reports underline the challenge this poses for the Reserve Bank of New Zealand (RBNZ). Headline inflation is expected to lift again in 2026 as higher food, fuel, to***co and housing costs flow through. ASB expects annual CPI inflation to move back above 4% over the coming year, while also forecasting a contraction in GDP in the June quarter and a higher jobless rate.

Kiwibank expects March‑quarter CPI to come in around 0.9%, keeping annual inflation near the 3.1% pace recorded at the end of 2025, but stresses that only a fraction of the quarter captures the recent oil shock.

ASB expects inflation pressure to re‑intensify later in 2026, even as Kiwibank’s March‑quarter CPI forecast suggests annual inflation will initially hold near 3.1%. Both banks see the June data as the real test of how deeply higher energy costs are feeding into prices.

RBNZ tightening path in focus
Against this backdrop, ASB’s central case has the OCR on hold until spring, then rising in a series of quarter-point moves to around 3.25% by early 2027. Yet the bank cautions that “None of those paths are without risk and potential economic costs.” Any mis‑step risks either entrenched inflation or an unnecessarily sharp slowdown.

For now, both institutions suggest the central bank will be forced to balance elevated near‑term inflation against growing spare capacity in the economy, as New Zealand awaits clearer readings from this week’s CPI and business confidence surveys.

07/04/2026

RBNZ split over how fast to lift rates as oil shock hits fragile economy https://buff.ly/2HBeBDq

Oil shock stirs fresh uncertainty for Kiwi mortgage borrowers

31/03/2026

First-home buyers hold up NZ housing as market goes flat https://buff.ly/leRnTpH

20/03/2026

ANZ pushes fixed mortgage rates to top of big‑bank pack https://buff.ly/gKGbbOn

Third major lender lifts fixed home loan pricing as wholesale rates climb

20/03/2026

First-home buyers hold up cooling NZ housing market: Cotality https://buff.ly/NN12oqL

Sales slip again but FHBs stay active as rents flatten and rates ease

17/03/2026

First-home buyers bide their time as investors retreat, survey shows https://buff.ly/QSJrCT8