First-home purchasers on the rise, say agents

File photo / Janna Dixon

First-home buyers appear keener to dip their toes into the housing market, according to a survey of 742 agents.

BNZ economist Tony Alexander has released a BNZ-REINZ survey sent to more than 10,000 agents which showed about a third who responded had noticed more newbie buyers.

"Our survey has found that a net 30 per cent of licensed real estate agents feel that there are more first-home buyers in the market," Alexander said.

"This is the fourth month in a row during which the result has been positive and the latest result is reasonably above June's net 19 per cent of agents feeling more first-home buyers are around."

About 150 agents responded to April and May surveys but changes to the way REINZ sent out email questionnaires resulted in 630 being surveyed last month.

Alexander ruled out any good-news spin-doctoring by agents. He has run the survey for four months and said if agents gave only positive feedback, responses would never change.

Yet he has noticed shifting attitudes and responses since starting inApril.

The survey follows this week's QV release which found Auckland's house values had hit new heights, surpassing the peak of 2007.

Alexander backs the introduction of capital gains tax, due to be unveiled by Labour today.

"The survey doesn't tell us anything about capital gains tax. There should be a capital gains tax in New Zealand to give greatest economic efficiency in investment. You'll get more efficient non-tax driven decisions," he said, although it would not solve boom-bust housing cycles because it had failed to stem these in Ireland, Spain and the United States.

"If the potential return to investors is less, what will they do? Some will not buy. Some will not build property to let out so capital gains tax, just like changes to LAQCs, will lead to fewer investors building property.

"It's not an argument against introducing it but an argument in favour of other things to boost housing supply, for example relaxing zoning regulations and more affordable building materials, lack of competition in the building materials market and lack of ability to bring people into New Zealand from overseas," he said.

Roughly the same number of real estate agents say investors are entering the market as those who say investors are leaving.

Alexander is worried about the lack of housing, saying about 25,000 new dwellings should be rising annually yet less than 14,000 were being built.

The survey did not show any big confidence boost in the housing market, he said. "One could not necessarily characterise the market yet as a sellers' one."

REASONS TO MOVE

Why buy now?

Buyers motivated by:
* Trading down: 17 per cent
* Trading up: 15 per cent
* Shifting into town: 14 per cent
* Relationship breakdown: 12 per cent
* Fear of missing out: 9 per cent

Why sell now?

Vendors motivated by:
* Need the money: 21 per cent
* Relationship breakdown: 16 per cent
* Trading down: 14 per cent
* Leaving town: 13 per cent
* Trading up: 10 per cent

Source: BNZ-REINZ survey