Housing market watchers say they have noticed a distinct shift in the types of buyers after the Government's policy changes in March. Photo / Bevan Conley
An increasing number of first-home buyers in Whanganui are getting offers accepted compared with several months ago when they were regularly beaten to houses by investors.
A range of professionals working in the city's real estate industry agreed almost all property investors retreated from the local housing market in theperiod following the Government's housing policies announced in March.
Among a suite of policy changes targeting the housing market, the Government removed interest deductions for residential investment property bought after March 27.
"Three months ago it was carnage," Whanganui lawyer Rob Moore, who helps first-home buyers with their offers, said.
"You put an offer on a property and there were 15 other people offering. Half of them are investors who are offering $50,000 or $60,000 over the purchase price."
It wasn't always the price where first-home buyers were losing out, more the conditions on their offers.
"They've obviously had no offers or no bites. They've reduced their price. That tells me straight away the market is changing.
"Three or four months ago that wouldn't have been the case."
There were still some properties getting multiple offers and Stampa said he knew of a Springvale property that had 11 offers on it just this week.
Property Brokers sales consultant Vicky Todd said before the Government's housing changes they were seeing up to 60 groups coming through open homes.
She cited one house where five Auckland couples drove down to Whanganui just to see the open home.
Now the number of groups coming through open homes is half what it was.
There was not a complete exodus of investors with Bayleys real estate agent Lyn Wickham saying she had noticed one or two investors starting to show interest again.
"They're people from out of the area because Whanganui's still been one of the cheaper places to buy houses in New Zealand ... they are still getting a 4 per cent to 6 per cent return on investment for their money."