Property

First home buyers fade, investors rise

Investors are coming back into the property market at a rapid clip.

Monday, August 05th 2024

New figures from the Reserve Bank show annual growth in new mortgages to investors rose by 11.5%, while first home buyer growth fell back 12.5% and movers declined to 1.1%.  Growth in mortgages for business purposes rose a significant 43.9%.

While the share of new mortgages to investors fell slightly on a monthly basis, down to 18.6% in June from 18.9% in May, that figure is still a substantial increase on the 16.5% in June last year.

For first home buyers the share was at 21.6% last month, up from 21.4% in May, however, this is an annual drop from 24.4% in June last year.

Movers’ share of new mortgages fell to 57.9%, down from 58.3% in May-24. In June last year, the share was 57.8%.

In total investors took out $1,047 billion in new mortgages last month compared to $1,304b in May and $939 million a year ago; first home buyers $ 1,212b, down from $1,480b in May and $1,385b a year ago; and movers signed mortgages for $3,252b last month compared to $4,030b in May and $ 3,288b a year ago.

The total amount of new mortgages written in June dropped by $1.3 billion to $5.6b, down 18.7% on May. This is a monthly drop of 1.2% when compared to June last year. The seasonally adjusted total value of new mortgages declined by 3.6% from May.

As new mortgage totals declined in June, so did provider loan changes, down by 13.8% from May but still a 14.2% increase compared to a year ago.  Top-ups and property purchases also dropped by 21.3% and 22.5% respectively in June.

In the month there were 14,590 new mortgages written, down 20.5% from 18,348 in May. This figure has dropped 5.9 per cent from 15,498 a year ago.

The average new loan value across all borrower types increased to $384,990, up 2.2% from $376,553 in May. In comparison to June last year, average values across all borrower types have increased by 4.9% from $366,886.

The average value of loans for first home buyers increased by 0.7% from May and the average value for investors rose by 1.7% over the same monthly period.

Comments

No comments yet

SBS FirstHome Combo 5.15
Unity First Home Buyer special 5.49
Heartland Bank - Online 5.65
TSB Special 5.69
Co-operative Bank - First Home Special 5.79
Nelson Building Society 5.95
ICBC 5.99
ASB Bank 5.99
AIA - Go Home Loans 5.99
ANZ Special 5.99
Unity 5.99
Heartland Bank - Online 5.55
ICBC 5.65
Kiwibank Special 5.69
BNZ - Classic 5.69
ASB Bank 5.69
ANZ Special 5.69
BNZ - Std 5.69
TSB Special 5.69
SBS Bank Special 5.69
Unity 5.69
AIA - Go Home Loans 5.69
ICBC 5.49
BNZ - Std 5.59
BNZ - Classic 5.59
TSB Special 5.69
Westpac Special 5.69
SBS Bank Special 5.69
Co-operative Bank - Owner Occ 5.69
Kiwibank Special 5.69
ASB Bank 5.79
AIA - Go Home Loans 5.79
ANZ 6.19
SBS FirstHome Combo 5.44
AIA - Back My Build 5.44
CFML 321 Loans 6.20
CFML Home Loans 6.45
ANZ Blueprint to Build 7.39
Heartland Bank - Online 7.49
ICBC 7.49
Unity 7.64
Co-operative Bank - Owner Occ 7.65
Co-operative Bank - Standard 7.65
Credit Union Auckland 7.70

More Stories

Competition between investors and first home buyers about to heat up

Monday, November 04th 2024

Competition between investors and first home buyers about to heat up

Existing properties are on the radar of property investors as the pace of decline in property values finds a floor and first home buyer numbers dip.

From hunted to hunters

Tuesday, August 20th 2024

From hunted to hunters

Property investors will be back in the market next year, even as house prices rise by 5-7%, Kiwibank says.

Division over OCR cut and problems with RBNZ

Tuesday, August 13th 2024

Division over OCR cut and problems with RBNZ

The NZ Institute of Economic Research (NZIER) shadow board is split over whether the Reserve Bank should drop the OCR tomorrow.

The RBNZ pivot is here

Monday, August 12th 2024

The RBNZ pivot is here

As most of the country’s economic indicators fall, the BNZ and Kiwibank are calling for an immediate OCR cut.