In real estate we're always dealing with a gap between vendor expectation and buyer demand. But it's the size of that gap that is critical to the momentum in the market.

At the beginning of 2021, the gap was small because we had a climbing local market and a fear of missing out (FOMO) scenario amongst buyers. We saw quite aggressive bidding and buying, so ‘the gap’ was small. 

In mid-2022 buyer interest dropped considerably in the Upper Clutha and there was a small price correction to the median sell price. But like any classic control system theory, there's always an overshoot on that asking price where vendor expectations don't correct as quickly as the market does, and we end up with quite a sizable gap between vendor expectation and where the market's sitting. 

That's basically what we've been dealing with since mid-22.

So what's interesting in the last two to three months is that we have seen ‘the gap’ reduce, which means vendors are coming back in line with buyer expectations. There is a realisation that to move on and sell their property the vendor may have to adjust expectations. 

With interest rates coming back, we're also seeing buyer demand pick up so ‘the gap’ is closing from both sides and that's a nice thing to see in real estate because the most efficient market is one where expectation and demand are aligned as closely as possible.

Asking price v selling price - 'the gap' - REINZ

New boutique sub-division

A new boutique sub-division that will appeal to many buyers is Bremner Park on the corner of Eely Point Road and Kidson Lane, right down in the heart of the ‘golden triangle’. It's a beautiful land parcel with some lovely established trees.

The public release for the subdivision will come online in the coming weeks, but we do have the opportunity for buyers to purchase now.

This is a great opportunity to get in early and secure something truly unique to the Wānaka area. 

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