A local real estate agent says tighter lending restrictions are taking the heat out of the Wānaka property market. 

Wānaka property prices have been on a rapid upward trajectory - with the median house price jumping 49.5 percent between January 2021 and January 2022 - but there are signs the market is cooling.

Proppys real estate agency co-founder Hannah Walker says she does not expect the rapid increase in values to continue this year.

“There is no sign of house prices dropping but at this stage we are not expecting the huge increases and gains that we saw in 2021,” she said.

“...Things are still moving in Wānaka but we feel that the heat and ‘FOMO’ [fear of missing out] has gone from the market.”

The amount of due diligence and steps needed to ensure financing can be met also means houses are taking a little longer to sell now, she said.

REINZ regional director Gail Hudson said in addition to tighter lending restrictions, “a level of caution in the market” due to Omicron and the red traffic light setting are having an effect on the number of sales to out-of-town buyers. 

In addition “the median price has continued to make it difficult for first home buyers to enter the market”, she said.

Perhaps exemplifying these changes, just 21 properties sold in Wānaka in January 2022, while in January 2021 65 properties were sold.

Last month’s sales included 18 houses, ranging from $805K to $3.51M; two lifestyle properties, for $1.25M and $3,605,505; and the sale of multiple adjoining sections for $7M.

PHOTO: Wānaka App