Vendors are seeing the market dynamics and understand that the market is more complex now, but they are still holding out for the right price in many instances which is protecting values across most levels.
The lower level of sales volumes in some areas compared to the same time last year can be attributed to a number of things – the raft of legislative changes impacting the housing market at the moment, the increasing difficulty in accessing finance (despite a record low OCR and very low mortgage rates from the banks) and vendors’ pricing expectations.
While vendors and investors take a ‘wait and see’ approach to the housing market – much like you would normally see around election time, first home buyers are steady and consistent. Speculation of a Capital Gains Tax – since rejected by the Government, the new requirements under the Healthy Homes regulations, ring fencing for tax losses on rental investments, and the offshore buyers ban has caused some investors to think twice about investing in property and has pushed some to sell their investment properties – adding to the rental properties shortage most areas face.
It is clear however, that if investors were withdrawing from the market, listings and sales would be much stronger. The lower level of sales volumes suggest that many investors are holding on to their investment properties and weathering the storm, cemented in the market due to firm values and a predicted upturn.
From 1 January the real estate industry are required to comply with the Anti Money Laundering and Counter of Financing of Terrorism Act (AML). The impact on the industry has been minor thus far – we now need to identify and verify all of our vendors. The result of this process has so far indicated little change to days to sell.
In a time of exceptional growth in tourist and resident population, the Otago region continues to offer attractive opportunities for all budgets and objectives.
The snow industry will be preparing for the arrival of the winter workforce, while we source properties for the seasonal demand in our rentals department. If you’re considering renting your property, talk to us about how we can maximise the return on your investment and manage your property so you can sit back and relax..
– Grant Parker, Harcourts WanakaManager.
The Wanaka and surrounding areas market continues steadily in regards to volumes, with the first quarter of 2019 resulting in 132 total sales confirmed, compared to 126 for the same period in 2018.
The median sale prices for the Wanaka Ward are slightly more volatile with January’s median dwelling price at $865,000 (down from $890,000 Jan 2018) and February’s $856,000 (up from $795,000 Feb 2018), the median sale price for March 2019 was $805,500 down from $850,000 for the same month in 2018. There are slightly more properties available for sale at present according to realesate.co.nz, figures are up 13% as at mid-April when comparing 2018 to 2019 at the same point in time.
Due to changes in buyer activity, effective marketing campaigns to ensure maximum visibility are vital to achieving vendor’s price expectations. Our sales consultants at Harcourts monitor buyer response during a campaign and return on investment. Through both experience and the meticulous recording of your campaigns success, we are able to continue to develop the marketing strategy to reach the very best result for you and make your property stand out from the crowd.
Construction is underway for the new supermarket, the much anticipated primary school and a water sports centre on the lakefront, all providing further facilities for the growing population in the Wanaka region.