However listings for the overheated Auckland city market reveal only about 270 sub-$250,000 listings, many of which are small inner city apartments, or sales by auction.
The latest Real Estate Institute of New Zealand (REINZ) report shows April sales for properties under $400,000 - the national benchmark for affordability - dropped 31 per cent.
The fall was partly attributed to first home buyers walking away from the property market in the wake of the Reserve Bank's controversial lending restrictions, which put a 10 per cent cap on bank lending to home loan borrowers with less than 20 per cent deposit.
Commentators say the restrictions have unfairly targeted first home buyers in provincial regions, rather than focusing on the overheated property markets of Auckland and Christchurch.
According to Westpac's online mortgage calculator, a $250,000 property with a 20 per cent deposit would mean repayments of at least $563 a fortnight over 30 years, on a two-year fixed interest rate of 6.19 per cent.
Using the same calculations for the April national median house price of $432,250, a buyer would repay a minimum of $973 per fortnight.
Ray White Wanganui agent Tim Hocquard said that buyers in Wanganui could easily secure a three-bedroom 1960s family home with a section and garage paying as little as $120,000.
"There are huge options available in Wanganui, it's a great market for those new home buyers.
"We believe Wanganui is a place of opportunity, and providing someone has the income to support their choice to live here, their housing options are endless."
While the lending restrictions were not holding buyers back, house hunters were purchasing homes of a lower price than they might have previously considered.
"Having to have a 20 per cent deposit has influenced people's end decision."
Some buyers were not aware of how to use different lending solutions to get loans, such as KiwiSaver withdrawals which could take several weeks to process, however by enlisting the services of a solicitor at an early stage, many potential buyers are becoming home owners. "That's what we all want, isn't it?" Mr Hocquard said.
Mortgage brokers report that many first home buyers are unaware they could still be eligible for a home loan with 5 or 10 per cent deposit, or need educating about creative lending solutions to help put together a 20 per cent nest egg.
"KiwiSaver withdrawals, Welcome Home Loans, borrowing from family or using a non-bank lender are some of the ways first home buyers can scrape together a deposit," said Mr Hocquard.
"This is where an astute solicitor or lending agent is essential, to ensure the buyer is well informed of their capabilities right at the onset."
REINZ president Helen O'Sullivan said while house prices tended to be lower in regional New Zealand, the median income for first home buyers in provincial areas was usually lower, so pulling together a 20 per cent deposit could be difficult.
She agreed many buyers were unaware of their options, in particular Welcome Home Loans.
To purchase a property under $400,000 in Auckland, first home buyers would either have to buy an apartment or a property in the outer suburbs, she said.
"Good options for affordably-priced properties exist in provincial towns - and here in Wanganui especially where price increases were modest," Mr Hocquard said. "There is no lack of supply of properties for sale in and around Wanganui."
