Property Market Shows Stability as First-Home Buyers Surge

The property market in New Zealand is currently experiencing a period of stability, according to insights provided by Toni Dawson, a qualified Mortgage Advisor with over 15 years of experience. Recent trends indicate that while the market is largely tracking sideways, several factors could lead to a stronger performance in 2026, particularly in terms of property sales and values.

Affordability conditions are improving, with a noticeable decline in property listings. Additionally, many existing borrowers are repricing their loans to align with current market interest rates, resulting in lower monthly repayments. The unemployment rate is also projected to decrease next year, contributing to a more favorable environment for buyers.

First-Home Buyers Drive Market Activity

First-home buyers are playing a significant role in the current market dynamics, making up more than 27 percent of property purchases during July and August 2025. This demographic is increasingly leveraging low-deposit lending options offered by banks to navigate the challenges of entering the property market.

Investors, or mortgaged multiple property owners, are also actively participating, accounting for nearly 25 percent of market transactions during the same period. Despite a general softness in low deposit activity, first-home buyers continue to explore avenues that make homeownership more attainable.

Interest Rate Trends and Future Outlook

As of October 6, 2025, the one-year ‘special’ fixed mortgage rate stands at 4.49 percent per annum across most lenders. This marks a notable drop from previous months, with rates recorded as follows: 6.19 percent in October 2024, 7.24 percent in April 2024, 7.25 percent in October 2023, 6.74 percent in April 2023, 5.45 percent in October 2022, and 4.55 percent in April 2022. These reductions suggest that further cuts to the official cash rate may be on the horizon, potentially leading to even lower mortgage rates.

In this climate of uncertainty, seeking qualified advice is essential. Toni Dawson emphasizes the importance of obtaining guidance to navigate financial goals effectively. For personalized support, she can be contacted at 027 646 9269 or visited at her office located at 38A Wakelin Road, Beachlands 2018.

In summary, the property market in New Zealand is currently in a stable phase, with first-home buyers and investors contributing significantly to activity. As market conditions evolve and interest rates potentially decrease further, many stakeholders are cautiously optimistic about the outlook for 2026.