With the market taking a hit over the last six months, now is the perfect time for first home buyers to be buying a house in the Hawke’s Bay, says Simon Tremain, managing partner of Tremains Real Estate.
For a while people sat on their hands with a risk-averse attitude because they didn’t want to pay too much in a falling market, but the time to sit back is over, he says.
“There are some really good opportunities at the moment because there are just not as many buyers around and first home buyers are normally cash buyers.
“When I say cash, yes, they've got conditions to meet but they don't have houses to sell, they are in a position where they can buy their first home because they've saved up enough money and they're in a cash position and that's what people are looking for.”
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Sellers want to move on with their lives but the buyers have not been there, Tremain says.
Suburbs like Flaxmere and Ranui are low socio-economic suburbs that could be attractive for first-home buyers and probably offer the best value for money, but there are also plenty of opportunities in Hastings and Napier.
Buyers would need $600,000 or under to get into Flaxmere and Ranui whereas six to 12 months ago similar properties were selling at $700,000 to $750,000, Tremain says.
In Napier, he would point first home buyers at suburbs like Pirimai and Tamatea, saying homes there would cost over $600,000 while properties in Napier Hill have been selling in the $500,000s and $600,000s.
First home buyers should be taking advantage because the market could run away on them again, Tremain warns.
“A lot of our suburbs are offering good value at good first-home buyer levels. If I was a first home buyer, I would be ripping into it right now, getting my finances sorted and start looking at what I can buy with my money.
“No one knows what the future holds but I think we have probably hit the lows for this cycle.”
