New Zealand first home buyers accounted for a record high market share of more than 28% of property purchases in the second quarter, according to a Monday report by Trade Me Property.

The report attributed the surge to several factors, including KiwiSaver withdrawals helping buyers pull together deposits, banks deploying low-deposit lending allowances of up to 25% of owner-occupier loans at less than 20% equity, and Reserve Bank data showing 55% of first home buyer loans in June were approved with less than a 20% deposit.

First home buyer momentum is not confined to major cities, with entry-level buyers finding opportunities across the country, the report added.

Cotality Chief Property Economist Kelvin Davidson noted that sales volumes have eased somewhat in recent months and listing stock remains elevated, with values edging lower and sitting about 18% below their early 2022 peak, although remaining 16% above where they were before the pandemic.