Wanaka's real estate market showed continued resilience in April, with sales volumes reaching their highest level since March 2024.

At this time of year we might expect to see a seasonal slowdown, but April’s performance suggests that underlying market fundamentals are strengthening despite the higher inventory levels that have characterized recent months.

The total of 44 house sales represents a significant improvement and signals a potential shift in market dynamics that could have important implications for both buyers and sellers in the region.

The most encouraging aspect of April's performance is the broad-based nature of the recovery. Beyond just residential properties, the market saw 17 section sales, seven lifestyle blocks, and five apartments change hands, bringing the total number of transactions to an impressive 73 for the month.

This diverse spread indicates healthy activity across different market segments, with particular buoyancy noted at the higher end of the market.

The median house price remained stable at around $1.55M in April.

The section sales deserve special attention, as they represent a meaningful shift from last year's patterns. Unlike the days when land banking was common practice in Wānaka – when investors would purchase sections at relatively low prices with the expectation of capital gains – today's land buyers are primarily intent on building quickly.

This transition from speculative land holding to purposeful construction is keeping Wanaka's tradespeople busy and contributing to the ongoing expansion of the town's urban footprint.

The Reserve Bank's fifth consecutive official cash rate (OCR) reduction has been a significant catalyst for the renewed market momentum. These consistent interest rate reductions have boosted buyer confidence and improved mortgage affordability, with banks demonstrating a willingness to lend to qualified borrowers.

Looking ahead to the winter months, the property market typically experiences a seasonal reduction in new listings. If the current sales momentum continues against this backdrop of reduced new supply, we could see inventory levels begin to meaningfully decline from their recent peaks. This would represent a welcome rebalancing after a period where growing inventory has been a persistent concern for sellers and real estate professionals alike.

The early May data points appear to support this scenario, suggesting that April's strong performance might not be a one-month anomaly but rather the beginning of a more sustainable trend.

Ray White Wānaka is situated at Sir Tim Wallis Drive Wānaka. Find out more.