September quarter first home buyers (FHBs) accounted for a record high 27.7% of property purchases in New Zealand, said Westpac in its Cotality-Westpac First Home Buyer Report on Wednesday.
The upwards trend has been seen across the country's main centers, urban areas, and provinces, the report added.
The bank said that a big reason for the lift has been the continued large falls in mortgage interest rates as compared to this time last year. One-year fixed mortgage rates are nearly 150 basis points lower, while two-year fixed mortgage rates are lower by 250 basis points than in 2023.
Almost 74% of FHBs' purchases so far in 2025 have been standalone houses, up from less than 73% in 2024, with the median price paid so far reaching AU$700,000 in 2025, just above AU$695,000 in 2024.
Westpac said its lending records show an average FHB age of 36 years, up from around 34 before the pandemic.
The bank believes that conditions will stay favourable for first-home buyers, with lower mortgage rates, easier access to KiwiSaver deposits, and relaxed loan-to-value ratio limits from December supporting affordability. While house prices may start rising again in 2026, the increase is likely to be moderate, meaning FHBs should remain active in the market.
