First home buyer’s checklist for Aucklanders in 2024
As 2024 unfolds, the Auckland property market continues to present unique opportunities and challenges for first home buyers. Navigating this dynamic landscape requires up-to-date insights and a clear understanding of current trends. Here’s what you need to know about Auckland’s housing market and how you can make the most of it as a first home buyer. Here’s your quick checklist:
- Understand key trends in the last decade.
- Understand the effect of OCR on bank interest rates and on property prices.
- Understand demand and supply – Prices tend to drop as the unsold inventory increases.
- Understanding future capital growth potential of a location.
- Learn about making conditional offers and
- Working with the right financial advisor to achieve your dream home.
Auckland Property Market 2024: Key Trends
The Auckland real estate market in 2024 is characterized by a mix of stability and subtle shifts. Despite the global economic uncertainties, Auckland’s housing market remains robust. Property prices have shown moderate growth, which reflects a cautious but steady increase compared to previous years. This trend presents both challenges and opportunities for first home buyers.
Understanding OCR Rates in New Zealand
This year has seen a growing emphasis on affordability, particularly following a 0.25% reduction in the OCR. The Reserve Bank of New Zealand (RBNZ) has noted that inflation has consistently fallen below their projections over the past three quarters. Although the official figures haven’t fully caught up, it’s anticipated that annual inflation will align with the 1%-3% target range by October.
As unemployment rose to 4.6% in the June 2024 quarter, the RBNZ acknowledges that high interest rates have achieved their desired effect. The RBNZ now predicts two additional OCR cuts by the end of the year, signaling a significant departure from their earlier stance of maintaining high rates until the end of next year—an adjustment that is both notable and welcomed.
First Home Buyers Navigating Auckland’s Property Market
For first home buyers in Auckland, understanding the market dynamics is essential. Here are some key considerations to keep in mind:
Property Buying Tips:
Start by researching Auckland real estate trends to get a sense of where the market is heading. This includes keeping an eye on property prices and understanding how they align with your budget. For instance, if you’re looking at the upcoming developments in Glenfield, you might find that newly built homes are priced competitively, offering a good balance between cost and modern amenities.
Expand your search and think of Suburb Selection:
Identifying the best suburbs for first home buyers is crucial. Areas with good transport links, amenities, and potential for capital growth should be on your radar. Suburbs like Glenfield and Mount Roskill offer a mix of affordability and growth potential. For instance, Mary and David, a young family, focused their search on Mount Roskill due to its excellent schools and growing community amenities. Their decision was influenced by the suburb’s potential for long-term value appreciation.
Government Incentives:
KiwiSaver First Home withdrawal which helps in making homeownership more accessible.
Finding an experienced Mortgage Adviser:
Familiarize yourself with the first home buyers information available on our website. This includes understanding the home buying process, from securing finance to making an offer, stay informed about the additional costs that may be involved such as loan application fees, potential legal fees, house insurance, Body Corp, Council fees, etc. Knowing what to expect can help streamline your purchasing journey. Don’t worry if its too stressful or if it doesn’t make sense, we are there to support you. Contact our team and we’ll help you understand and simply your cost of ownership, weekly payments and prepare a personalized mortgage application strategy for you, free of cost indeed. Call 0800 630 7171
What First Home Buyers Should Know Before Purchasing a Home in Auckland
Before making a purchase, it’s essential to conduct thorough research. This includes understanding the local market, assessing property values, and evaluating the long-term prospects of different areas. Additionally, ensure you have a clear budget and understand the associated costs of buying a property, including legal fees, inspections, and possible renovations. Check out relab.co.nz to do your initial research and due diligence about the property you like.
2024 Auckland Housing Market Insights
The Auckland real estate market is expected to remain relatively stable throughout 2024, with gradual price increases and continued interest in both new and existing homes. For first home buyers, this means that while the market is competitive, there are still opportunities to find a suitable property with careful planning and informed decision-making.
The Auckland property market in 2024 offers a mixed bag of challenges and opportunities for first home buyers. Stay informed about market trends, understand affordability issues and utilize available resources.
In addition to that, don’t forget to get in touch with us at Mortgage Masters who will better understand your situation, including your income, expenses, current financial health, and property goals to navigate the market effectively and make a sound investment when it comes to investing in your first home buyers.
