Lynette Winsloe Principal and Sales Manager First National Wanaka

MADDY HARKER

With house prices in Wanaka comparable to Queenstown and Auckland, first-home buyers’ chances of buying here are continuing to decline, First National’s Lynette Winsloe said this week.

While Real Estate Institute data from March shows the most affordable option in the wider area is a studio apartment in Cardrona costing just $112,000, house prices in Wanaka itself started at $647,000.

"Prices in general are getting out of the first home buyers range,” Lynette said.

The median price for a house in Wanaka (excluding the outer areas) was $843,000 for March 2017, well above the national average. Compared to February 2017’s median of $1,095,000 however, this represents a 23 percent price drop.

Lynette said this drop was part of "month-to-month” fluctuations rather than a downturn in the market. "[This information is] not encouraging for first-time buyers at this point,” she said.

Buying a section to build on is becoming a less feasible option for first-time buyers too. In the last year, the median price for sections in Wanaka had increased from $380,000 to $458,000.

First-home buyers hoping to purchase their first house generally needed savings of at least $100,000, Lynette said. "This can be a big ask for young people. Some buyers are able to get financial support from their parents, but not everyone has this option.”

Banks continue to make lending difficult for most purchasers, Lynette said, and this only adds to the difficulties for first-home buyers.

Lynette suggests would-be first home buyers start saving as early as possible, utilise Kiwisaver savings and look into Kiwisaver’s first home grants, speak to their bank about what they can offer, register with realestate.co.nz and trademe.co.nz for regular updates on listings within their price range, and to speak to a local agent.

Real Estate Institute data from March also showed residential properties are selling faster month-on-month, with properties selling an average of 16 days faster in March than in February. Data shows sales took an average of 53 days in February, compared to 37 in March.

PHOTO: Supplied