‘Early spring’ for property

Activity from first-home buyers has brought an ‘‘early spring’’ to the housing market, listings website Realestate.co.nz says.

The website said more than a million viewers visited in August and the number of new users was up 24 per cent on last year.

Spokeswoman Vanessa Taylor said activity had been spurred by the official cash rate being cut to 1 per cent.

‘‘Prospective home buyers can look at the property market with fresh eyes in terms of affordability, either for a first home, or for those looking to move up the property ladder with a higher level of equity.’’

She said August was typically one of the quietest months for the property market but real estate agents were saying it was like an early spring in terms of buyer interest.

Most of the increase in activity was in the cheaper parts of the market, she said.

Less investor activity, due to loan-to-value and foreign buyer restrictions, created an opportunity for first-time buyers, she said.

Greater numbers of people were also able to access money they had been saving in KiwiSaver for a deposit.

‘‘There have also been reports of a lift in the number of people attending auctions and open homes, researching the type of property they could get for their money.’’

The average asking price nationwide was $677,736, up 1.2 per cent compared to July.

Auckland’s average asking price remained flat at $925,391. The number of homes for sale in the city was up 1.8 per cent.

Coromandel, Gisborne, Manawatu/Whanganui, the central North Island, Wairarapa, West Coast and Southland all had record low properties for sale.

Across the country, there were 20,712 homes for sale listed on the site. Of those, 7729 were new listings in August.

‘‘Nationally, we haven’t seen total stock levels this low since July 2016,’’ Taylor said.

Of the 19 regions across New Zealand, only seven had increases in total stock levels, while 12 recorded falls compared with August 2018.

‘‘What’s more, seven regions had record all-time lows in the number of homes for sale in any one month since records began over 12 years ago,’’ Taylor said.

‘‘With the surprise interest rate cuts in August, we will be watching to see how this could translate to increased listing activity, particularly in spring which has traditionally been when sellers go to market.

‘‘In the meantime, people are doing their homework on the implications of the interest rate cuts and what it could mean for them in the housing market.’’

Broker Glen McLeod, of Edge Mortgages, said he was dealing with a lot of first-home buyers.

‘‘The market has shifted towards first-home purchasers. ’’

Kiwibank general manager of borrowing and investments Chris Greig said it was also experiencing an increase in first-home buyer activity.

‘‘This is a direct result of lower servicing costs due to the low rate environment.’’