Never a better time in four years for first home buyers

Falling interest rates and house prices leading to better mortgage affordability is drawing first home buyers into the market in increasing numbers.

The latest REINZ data show prices in the lower quartile are down to $580,000 in May compared to $599,000 in April.

This is the affordable end of the market, usually dominated by first home buyers. Since national house prices peaked at $670,000 at the end of 2021, they have dropped 13.4% or $90,000.

At the same time mortgage interest rates have declined by about 2%, meaning substantial savings on monthly repayments.