Why the stars are aligning for first home buyers

Despite all the uncertainty and volatility in the financial markets – largely in reaction to changes in worldwide trading conditions, there are underlying signs that now could be a great time to purchase a brand-new home.

Let’s look at the forces that are driving this optimism.
 

1. Another cut to the Official Cash Rate OCR. Even before the Reserve Bank’s official announcement, leading banks made cuts to their fixed mortgage rates with BNZ leading the charge by dropping its fixed 18 month mortgage rate to 4.89%. With more cuts to potentially come, we believe anything with a four in front is good news for home buyers.
   
   
2. Property prices are still very competitive. According to Trade Me, April saw a small 0.8% drop in house prices nationally compared to March 2025.Trade Me Property customer director Gavin Lloyd said the decline is consistent with seasonal patterns.
   
   “Historically, as we move into the colder months of the year we see a dip in buyer activity, and this is reflected in the most recent data. House hunting is a lot more appealing when the sun is shining and properties look and feel their best,” Lloyd said.
   
   
3. KiwiSaver has recovered. The financial markets have been volatile and many Kiwis would have seen a dip in their KiwiSaver balance.
   
   However, as the market began to understand the new environment they are operating in, the markets rallied with most KiwiSaver funds recovering the losses and some bouncing even higher.
   
   Morningstar data director Greg Bunkall said; “The indexes we use as benchmarks for KiwiSaver are all pretty much recovered or above where we saw them at the end of March.”
   
   So, if you’re thinking of using your KiwiSaver as a deposit on a new home, then you should see that it’s largely in one piece – if not even better.
   
   
4. Plenty of choice. As the property market recovers, there’s still quite a backlog of properties for sale. This gives new home buyers plenty of options to choose from and none of the auction pressures you might have seen a few years ago. There are still plenty of new homes to be bought under the $700,000 price tag – something that would have been quite rare a few years ago.
   
   As an example, you can buy a Fletcher Living 2-bedroom home in Kohepiro Lane, Karaka for just $629,000.  But smart buyers and investors are moving quickly, so don’t delay your move.
   
   
5. 10K First Home Grant. This is the final bit of good news and something many new home buyers find particularly useful. We're helping qualifying First Home Buyers with a $10,000 grant. This can be put towards the deposit, freeing up money for other things like legal costs.
   
   Auckland couple Kevin Leadingham and Ashini Perera, used their grant to help buy their first home, in Fletcher Living’s Waiata Shores development between Manukau and Papakura.
   
   “That $10k was really helpful for us,” says Leadingham. “It gave us peace of mind, especially with all the other fees like lawyers. It was a good feeling knowing we had that boost for our deposit.”

Finally, there’s another trend emerging in the first home buyer market. With money tight, many buyers are avoiding risks and are looking for fixed priced homes with all the building warranties. They don’t want to go through an auction process or take a punt on a second-hand home that may need lots of improvement work.

Aurelie Le Gall, General Manager Fletcher Living, says many first-home buyers are simply looking for clarity and a home they can rely on.

“Our homes have a set price,” she says. “There’s no tender or auction process, no emotional rollercoaster, and no surprises. First-home buyers absolutely deserve the comfort of a brand-new home.”

If you want certainty, why not take a look at our homes today.