David Hargreaves attempts to provide some context for the record share of mortgages going to first-time homebuyers despite dropping housing prices.

On occasion, they have been on the verge of exiting the domestic market in New Zealand.

Wannabe first-time buyers (FHBs) have been forced to watch as investors and current owner-occupants exploited their far greater financial clout to force their feet in the door first before slamming the door in their faces.

However, the FHBs are currently having a lot of freedom.

According to the most recent Reserve Bank monthly mortgage figures, as we previously reported, the FHBs are currently receiving a record amount of mortgage advances, with just under a quarter of the overall advances coming to them.

They are, however, investing in a declining market. According to the Real Estate Institute of New Zealand (REINZ), the median house price has decreased by more than 8% in the 12 months leading up to May 2023. In light of this, is it wise or brave of the FHBs to be playing such a significant part in home purchases at this time?

I do not actually believe it to be either brave or foolish.

Just FHBs acting how FHBs act in this nation. I also have no opinion on whether buying right now is a good decision or not. because I am uncertain about what will happen to the market. None of them do.

In 2020, for instance, when it appeared that the whole globe was collapsing and likely taking the housing market with it, I expressed my opinion sadly about how time had not been kind to FHBs.