Is now the time to buy a home?

As Mortgage Adviser’s with a front-row seat to New Zealand’s housing market dynamics, we are seeing signs that our current buyers’ market may not last much longer. With interest rates lowering and lending criteria loosening, a shift to a sellers’ market may change some people’s next step in homeownership.

Right now, buyers have an advantage:

• You can negotiate with confidence on price
• Properties are staying on the market longer, giving you time to make considered decisions
• There’s less competition at open homes and auctions
• Vendors are more willing to accommodate conditions in sale agreements

However, this could change. If you are thinking of buying a home, come and see us soon, while the market is still in your favour.

Let’s look at why this is.

Interest rates are lower

We’re currently in the sweet spot where interest rates have fallen from their recent peaks but haven’t yet triggered the market ramp up that usually follows. This means more affordable repayment terms, ability to apply for larger loan amounts, and lower fixed rates.

Lending criteria more relaxed

Banks have recently relaxed some of their lending requirements. Debt-to-income ratios have become more flexible and deposit requirements are lower for some buyers. At Mortgage Link, we don’t work just with banks, we also have non-bank lenders with competitive offerings too. If the market shifts in favour of sellers, the lending conditions will probably tighten again as lenders manage the demand.

Prices likely to go up

Based on the market now, we are thinking property values will most likely start climbing again in late 2025, early 2026. Buying sooner rather than later, means getting in before the house you want gets a price hike.

What we are telling our clients

As Mortgage Advisers, who help Kiwis get into the property market every day, our advice is straightforward: