In contrast with the previous two months when agents noted a falling away of potential vendors asking for valuations, this month there has been an improvement, according to the monthly survey from BNZ and the Real Estate Institute of New Zealand.
Agents are reporting that listings are scarce and getting and a record low number of agents are seeing more first time buyers, just 18%. The average is 34% and the latest result continues a downward trend in place since March.
This result appears to run counter to the argument some have put forward that first home buyers have flooded the market the past few weeks in order to secure a loan before new Reserve Bank rules come into force.
‘However, given some evidence that banks have already tightened their high loan to value lending in anticipation of the rule change this result may reflect first home buyers starting to give up on their home ownership dreams for now,’ the report says.
For the third month in a row more agents have reported that they are noticing more people going through Open Homes. The survey says that interest from buyers appears to be remaining firm at a net 24% positive versus the two year average of 21%. This reading is particularly strong in the Bay of Plenty at 55%.
Agents continue to report more investors being in the market with a net 21% versus a 16% average saying they see more about.
A strong net 48% of responding agents report that they perceive house prices to be rising. The Auckland outcome is 82% and at the other end of the spectrum is Hawkes Bay/Gisborne at just 5%.
