A Guide to Buying a Home in 2025
If you’ve been waiting for the right moment to step into the property market, now might be your time to shine. With an abundance of properties currently available, buyers are finding themselves in a strong position to secure homes that meet both their needs and budgets.
Here’s what you need to know about buying a home in 2025….
It’s a Buyer's Market
Right now there are a lot of properties on the market. This means there are more options for buyers, giving you the chance to find a home that meets your needs and fits within your budget. Real estate agents are noticing that properties that have been on the market for a while are often slower in interest, and therefore motivated vendors are more likely to adjust their pricing for a quicker sale. More properties also means more competition which can also be a motivator for vendors to have a more realistic price in mind, especially if they need a quick sale.
Right now, investors aren’t creating a huge presence in the market, which again, is good for first-home buyers as they often can be looking in the same price brackets. However, it’s expected investor activity could ramp up as we get further into 2025.
Utilise Government-Backed Schemes
While 2024 said goodbye to the First Home Grant, there are still plenty of support options for those looking to buy a first home in 2025. For many first-home buyers, tapping into KiwiSaver is a fantastic way to help get that initial deposit for your first home. While there are a number of criteria to meet, this is an option for many first-home buyers who have been contributing regularly towards their KiwiSaver and is especially great for those who might not have the cash savings available for their deposit.
The First Home Loan is also another great product that is underwritten by Kainga Ora. This loan is designed for families and individuals with lower to moderate incomes who have a lower deposit available. This scheme allows borrowers to qualify for a home loan with a deposit as low as 5%. Certain criteria need to be met, including income and personal criteria, however, this offers an option for those looking to buy and makes homeownership more attainable for those who might struggle to gain traditional lending.
Remember, There’s Never a ‘Perfect’ Time.
When it comes to the property market, there is no such thing as ‘perfect’ conditions. Typically lower interest rates mean higher house prices and vice versa, so it’s about meeting the market where you can and where you can confidently support loan repayments. Right now, interest rates are falling and are expected to continue to do so, which is promising for the future. House prices are also still on the lower side, which means less to borrow for many home buyers. So while there might not ever be a ‘perfect’ time, right now is looking pretty good for those wanting to enter the market.
Don't Forget to Get Pre-approved
If you are looking to buy in 2025, we encourage you to get pre-approved as soon as possible. This allows you to better understand your exact budget and get serious about finding a home. A typical pre-approval usually lasts 3-6 months, depending on the lender. If you don’t find something in this time frame, your adviser can work with you to get a new pre-approval. This is generally a simple process unless your circumstances have changed. Being pre-approved allows you to move quickly, should you see a property come up that you like, and it allows you to be confident in putting in an offer subject to finance.
We can help you through the entire pre-approval process and also help you manage reassessing your pre-approval, should your time run out.
Our team of Christchurch-based mortgage advisers would love to be able to support you on your home-buying journey. Simply reach out to us via our contact form or call us on 0800 25 35 45 and let’s get you ready to buy your first home!