Posted May 20th, 2025

Part 2. House Supply is High, Competition is Low

If you’ve been dreaming of owning your first home but felt locked out by high prices or the need for a large deposit, 2025 might just be your best chance yet to finally make it happen.
Here’s why: there are more homes for sale right now than there have been in a decade, and the market conditions heavily favour buyers.

“You don’t have to walk very far around the neighbourhood these days to see a ‘for sale’ sign,” says CoreLogic’s NZ Chief Property Economist Kelvin Davidson.

The Numbers Tell the Story

• 30,443 residential properties were on the market at the end of April — the largest stock overhang in any month for the last 10 years, and up 11.1% compared to April 2024.
• Listings on Trade Me are up 25% year-on-year, creating more options and better deals for buyers.
• Prices have stayed relatively flat as sellers compete for a limited number of active buyers.
• Mortgage interest rates are trending down, and investor interest is starting to creep back in.

Put simply: supply is high, competition is low, and buyers have the upper hand — especially in price negotiations.

“If you’re ready to buy, now’s a great time — there’s more on the market, which means more options for buyers,” says Kylie from YouOwn.

But this won’t last forever. As the economy strengthens and interest rates drop, more buyers will return to the market, and that increased demand will likely drive prices back up.

“Once the market stabilises and the current oversupply of homes is snapped up, we can expect to see more consistent growth in property values,” Kylie adds.

 

What’s Stopping Most First-Home Buyers?

One word: deposit.
Banks typically want to see a 20% deposit before approving a loan — and with average house prices hovering around $850,000, that means saving $170,000 just to get started.
That’s a tall order for most people, especially in today’s cost-of-living environment.

That’s Where YouOwn Comes In
YouOwn’s low deposit shared ownership model is designed to help people break through the deposit barrier and into homeownership.
Here’s how it works:

• You bring as little as 5% deposit to the table.
• YouOwn partners with you to purchase the home.
• You live in it like any other homeowner and buy out YouOwn’s share after 5 years — at your pace.
• There’s no income cap, and it’s already helped over 200 New Zealanders get into homes that otherwise would’ve been out of reach.

Why Now Is the Time to Act
The current market is uniquely favourable for first-home buyers:

• More listings than buyers = more choice
• Stagnant prices = strong negotiating power
• Falling interest rates = cheaper borrowing
• YouOwn’s 5% deposit option = lower barrier to entry

“In a hot market, buyers must compete for properties. But in the current market, vendors are competing for buyers. Buyers have the upper hand and they are playing their advantage hard when it comes to negotiations over price.”

This is a rare moment when the stars align for aspiring homeowners. If you’ve got a small deposit and stable income, you don’t need to wait.

Take the First Step Today

✅ Register your interest
✅ Find out more about shared ownership
✅ Apply Now