First home buyers may benefit from recent changes in the property market, a Wānaka real estate agent says.

Co-founder of Proppy.co.nz Hannah Walker said the number of listings coming to market is steadily rising and with the increase in supply and the relaxing of consumer lending rules, first home buyers “now have better choice of stock, and slightly better pricing”.

The Credit Contracts and Consumer Finance Act (CCCFA) had worked against first-home buyers but new, looser rules will come into effect in early July. 

The changes to the Act aim to prevent lenders from interpreting regulations too conservatively: the requirement for lenders to analyse the details of borrowers' spending habits has been removed and the new rules recognise borrowers' spending habits may change once they take on a mortgage.

Buyers shelling out for their first homes will still need deep pockets to buy locally.

The median Wānaka house price is currently $1.7M - although there are some homes far below this level. A two-bedroom apartment in Albert Town last month sold for under $600,000.

Real Estate Institute of New Zealand regional director Gail Hudson said owner-occupiers are the most active group of buyers in Queenstown Lakes at the moment.

There was also a fair amount of interest from people looking for holiday homes, she said.

Rising interest rates, however, “are a concern for all buyer groups”.

“Agents say that the market is in a state of adjusting — buyers are taking their time and have a fear of overpaying, and vendors are still needing to reconsider their price expectations to meet the market,” Gail said.

PHOTO: Wānaka App