First-home buyers 'radically scared away'
Fewer first-home buyers are looking to buy properties but investors are largely undeterred by restrictions on low-deposit lending, the latest BNZ/REINZ survey of real estate agents indicates.
Monday, March 17th 2014, 12:00AM
by The Landlord
The survey found that a net 44% of agents were seeing fewer first-home buyers, up from 40% last month. “This is little changed from February’s net 40% result and while better than results close to -80% in November and December still tells us that FHBs have been radically scared away or shut out of the home ownership market by the new credit controls," BNZ chief economist Tony Alexander said.
A reading of 0% would indicate that agents were not seeing more or fewer first-home buyers.
Before the loan-to-value restrictions came in, a net 24% of agents were seeing more first-home buyers.
A net 15% of agents say they are seeing more investors, down from the net 26% before the controls were introduced.
Agents said 19% of their sales are to landlords, about the same level as a year ago. “While first-home buyers have been most severely affected by the credit controls, investors have also pulled back to a small degree,” Alexander said.
The survey found that 6.4% of sales were to people living overseas. Of those sales, 25% were to people from China, up from 15% last March. Of them, 41% were considered likely to move to New Zealand.
The survey reported a drop in the number of people going through open homes and a decline in the number of agents seeing more written sales going unconditional. A net 24% of agents say auction clearance rates are declining.
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