The latest statistics out on Wanaka property report that sales have not yet started to reflect what the feeling is out and about around the streets especially in the cities. When will the cycle turn or plateau and is there less urgency out there with the buyers keen to enter the Wanaka property market?
Wanaka’s median house sale was $1.885 in March revealing a more modest increase when compared to the February increase. These statistics did contain 10 sales within the Marina Terrace apartment complex, which has skewed the results up. Likewise, the April statistics are skewed heavily by the inclusion of the sales of 27 apartments in Albert Town in the Riverside residences complex which have dropped the median to $1,230,000. The median section price revealed a fairly significant decrease when compared to the February 2022 prices.
Discussions with valuers concur with my observations that properties that have the X factor are still selling strongly, with multiple parties interested, but unlike a year ago some properties are not attracting any interest. Unlike the previous 2 years agents can hold open homes and few will turn up. Some properties are passing their deadline dates and not being sold.
There appears to be a definite feeling within my buyer pool that waiting is the most prudent move. To some extent I can see where this sentiment comes from, however buying the absolute right property with a wish list well and truly ticked CAN beat any initial savings made during the initial purchase. Also, the Wanaka market is significantly different from anywhere else in New Zealand. During the GFC prises here stabilised but did not drop.
My international and local clients hooked into the global financial scene have been predicting an international financial correction to kick in, sometime later this year. On a national basis, business confidence and economic performance, as well as property prices are all easing.
Section prices are certainly being impacted by the publicity surrounding the materials supply crisis and impact on costs. Just yesterday the media reported that gib orders were taking 6-7 months to fill, with the bigger home build companies getting supplier preference.
The opening of the boarders has had an impact on April sales with the Australian buyers out in force. This combined with the annual winter pilgrimage of skiers from Auckland, Sydney and Melbourne could as in July / August 2020 kick the market off again.
There are very limited listings at the moment. Some properties are still being sold off market with buyers wishing to avoid a marketing campaign.
So the jury is out, and time will tell if the wintery morning temperatures reflect the pattern of the sales curves and figures in our Wanaka property market.