Hindsight is a great thing. I have one person after another telling me that they wish they’d purchased 3 or 5 years ago. We all do, especially when it is evident how much the Wanaka and Queenstown property market has moved in the past recent years.
Markets are cyclical in general. Factors that set markets into a spiral are both local and international economic factors, which are usually difficult to predict. The one thing that is for sure is that when the market takes off it is trickier to get a foot in the door in the market.
The Wanaka and Queenstown real estate markets have not historically seen prices go backwards. The lakes, mountains and people wanting this lifestyle aren’t going to go away. Buyers moving in from outside the region have traditionally been sufficient to ensure that supply/ demand sustains the price levels.
The ideal time to buy is just before the spike in the market.
Many local investors have made significant profits in the past 3 years, by investing in untitled sections. They have only had to pay a 10% deposit and have on sold just prior to titles being released, before they have been required to pay the balance of the purchase price, at a healthy profit. I have had clients buy homes during the heat of the market in 2016 and been offered an extra $150,000 within 10 days of purchasing at auction.
I always think that being able to see a property in the main season that you are tending to use it is an advantage. Failing that, get some honest advice about the sun and wind for that season. Seeing a property in winter is always great peace of mind as you are often seeing it at its worst. If you can get emotionally connected in the bleakest months all bodes well.
My experience has demonstrated that just before Christmas or the school holidays, buyers can be preoccupied and there is sometimes a drop in activity. Certainly, buying in Wanaka and Queenstown at the end of January and early February is a time when there are many active buyers. Families have had a chance to take time out from their busy schedules, discuss and spend time looking around. There is often a good level of stock though, as vendors are listing for these peak times.
So…………. from what my buyers are telling me – avoid the procrastination and strike while the irons hot, otherwise you may well be looking back in 3 years time saying that you should have done it in 2018!!!! The current market is in a relatively slow patch and it is tricky to say where the prices are going to track over the coming months.