NZ Housing: Not Cheap, But Is Affordability Improving?

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New Zealand’s housing market has long been a hot topic, with affordability challenges making headlines for years. But recent CoreLogic data suggests that things may be shifting. So, is now the right time to buy? Let’s break it down.

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House Prices vs. Income: The Balancing Act

While house prices remain high, wage growth and stabilising interest rates are helping affordability edge in the right direction. The percentage of household income required to service a mortgage is improving, making homeownership slightly more accessible.

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Interest Rates & Mortgage Pressure

Higher interest rates have been a significant hurdle, but the market is showing resilience. As inflation comes under control, the potential for rate reductions later in the year could ease mortgage pressures, allowing more buyers to enter the market.

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Time to Save for a Deposit: Shrinking?

One of the biggest barriers for first-home buyers has been the deposit. While it's still a challenge, slower price growth means saving for a deposit might not be as out of reach as it was during the peak of the market.

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What Does This Mean for Buyers?

If you’ve been waiting on the sidelines, now might be the time to start planning. Buying conditions are improving, and securing a home before competition heats up again could be a smart move.

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Thinking of buying but unsure where to start? Get in touch with us - Let’s explore your options and find a new build that suits your budget.

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