More than 5200 first home buyers got into the property market in August. Photo: RNZ / Nate McKinnon
First home buyers are quietly returning to the market, accounting for a quarter of property purchasers in August.
Property research firm CoreLogic said that was the highest level of market share since last December, with a steady rise since last March's 21 percent low.
However, it said the number of sales was still down on the longer term average at 5250, compared with a typical August, which over the past two decades has resulted in an average of about 7800 transactions.
"On the one hand, the continued dampening effect of the loan to value ratio rules on FHBs [first home buyers] will have prevented some would be buyers from making a purchase, while others have no doubt held back willingly, with the aim of getting a cheaper price and/ or better house later down the track," CoreLogic said it in its latest report.
It said new builds continued to be popular with mortgaged investors, given continued interest deductibility and a shorter Brightline test.
At the same time, the market share of cash buyers was also up to about 14 to 15 percent, compared with 9 to 10 percent late last year.