First home buyers

PHOTO: People are purchasing houses with others or getting in boarders so they can get into the property market, an expert says. Photo credit: Getty Images

A first home buyer expert says people are having to take a different view to home ownership as a result of the current difficulties in the housing market.

Tony Alexander

Why first home buyers should take a ‘summer break’

It was a record year for the property market in 2021, New Zealand’s average house price exceeded $1 million for the first time.

According to property data company CoreLogic’s House Price Index, the year finished with the average price at $1,006,632 and record-breaking annual market growth of 27.4 percent.

This surpasses the previous record of 24.4 percent set in 2003.

First Home Buyers Club director Lesley Harris told Morning Report the current housing market is incredibly tough for people in both major cities and the provinces.

“I think we’ve known it for a long time… we don’t want to underplay how incredibly challenging it is. Having said that, we are still seeing people get into their first homes but there’s a lot of compromises being made.”

She said some of these compromises included people purchasing houses in groups, bringing in boarders and buying property in the outskirts of major centres.

“Kiwis are hellbent on getting into their first home and they will do whatever it takes to actually make that move,” Harris said.

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