The real estate market in Wānaka has seen an uptick in buyer interest, signalling a busy period ahead.

This renewed confidence follows a relatively quiet autumn and winter, during which potential buyers were cautious. Now, with more favorable interest rates on the horizon, inquiries are more genuine.

Today’s prices coupled with tomorrow’s interest rates create an ideal scenario for buyers.

In August*, Wānaka saw 32 house sales, marking a 10 percent increase from the same month last year. This steady volume underscores the market’s resilience. 

The median house price has remained consistent, hovering just under $1.5 million. Unlike major centres such as Wellington, which have experienced significant price corrections, Wanaka’s limited supply and continuous influx of people have stabilised its property market. 

This consistency is a key indicator for investors looking for a stable investment.

There were 13 section sales in the Upper Clutha in August. Land is one area where there have been some price corrections, particularly in sections under $700,000 where most of the sales have been. Despite a 10-15 percent correction over the past few years, this segment remains active. 

The cost of building has contributed to this correction, but the availability of reasonably priced sections offers opportunities for new developments.

Builders and developers can take advantage of this trend, especially as the demand for housing continues to grow.

The reduction in the Official Cash Rate (OCR) and favourable fixed rates from lenders have further boosted buyer confidence and the current market offers a wide selection of properties, and buyers do not necessarily need to be cash unconditional. 

Deals subject to sale, finance, and due diligence are more common, providing buyers with flexibility. This scenario is advantageous for buyers, especially as the market is expected to heat up again.

With interest rates likely to remain favourable, the outlook for Wānaka’s real estate market is positive.

If you’re looking to buy or sell contact our team at Ray White Wānaka.

Listen to the latest Goods on Real Estate podcast here.

* REINZ statistics - August 2024