Focusing on types of buyers, the report confirmed a shift in market share dynamics over the year, with the first quarter seeing mortgaged investors accounting for 30% of real estate purchases despite the persistence of the pandemic. COVID-19 and the temporary respite from loan restrictions. However, since the entry into force of the 40% deposit requirement, the share of mortgaged investors has fallen to almost 25%.
Meanwhile, first-time homebuyers (FHBs) have been more than eager to ‘fill the void’, with their market share aided by factors such as KiwiSaver withdrawals and a willingness to look for cheaper properties (i.e. townhouses / units or houses further out of town).
In contrast, many would-be ‘movers’, or those moving as owner-occupiers, have stayed where they were due to financial restrictions or a lack of choice for their next property, leading to a housing boom. renovation and added to the already intense pressures on the stretched construction industry of the country.
CoreLogic’s chief real estate economist Kelvin Davidson said he expects a significant housing slowdown in 2022.
“Sales volumes have already passed a milestone and should be much calmer in 2022, the rate of annual value growth will surely continue to slow down, going from a figure of more than 25% for the 2021 calendar to perhaps be single-digit, even low. single-digit, in 2022, ”Davidson said.