First home buyers are pulling back from the real estate market - survey

Archive photo. Photo / Supplied

By RNZ

The Reserve Bank’s actions to cool the economy appear to have had an immediate impact on the real estate market.

A survey of sector workers by the Real Estate Institute and Tony Alexander Real Estate indicated the central bank’s warning about recession and ongoing hikes to interest rates had driven down average prices and buyer interest.

Of the 555 agents responding to the latest monthly survey, published on Tuesday, a net 48 per cent said they were seeing fewer people at open homes, compared with a net 3 per cent in October.

A net 39 per cent were also seeing fewer people at auctions, which compared with a net 10 per cent in October.

The survey also found first home buyers had pulled back from the market, but were more interested in making a purchase than investors.

While some investors continued to look for bargains, the latest report indicated they have declined over the past two months.

Overall, buyers remained concerned about high interest rates, access to finance and prices falling after buying.

All 13 regions were seeing declining prices.