Queenstown Market Update - September 2024
Spring has truly arrived in the region, with blossoms and daffodils in full bloom, and Daylight Savings now behind us. Despite this, winter hasn’t quite left us, as the ski fields continue to report some of their best September conditions in years.
Who’s in the market right now?
As usual, first-home buyers remain the most active group in the local market, closely followed by owner-occupiers. Investor interest has gradually increased as we move into spring, with Australian buyers leading the charge. While investor inquiries were relatively quiet over winter, we expect this to ramp up as we head into spring and summer.
Open homes have remained busy, with steady attendance across various price brackets. Properties between $900K and $1.5M have been most interesting. Auctions have also been well-attended, although some bidders have faced challenges securing finance approval in time, preventing them from placing bids.
To avoid this, we strongly encourage buyers to secure pre-approval before starting their home search. That way, when you find your dream home, you’ll be ready to move forward without delay!
Queenstown Sales Statistics
In August, the median house price for the Queenstown-Lakes region was $1,380,000, marking a 2.8% decrease from July and a 5.8% drop compared to the same time last year.
There were 77 sales in the Queenstown region during August, just slightly down from the 64 sales recorded in August 2023.
Regional Sales Information
Across Otago, the median house price sits at $640,000, reflecting a 6.7% increase compared to last year.
In the Central Otago District, the median house price has surged to $810,000, up a significant 16.6% from this time last year.
Currently, the average time for a home to sell in Otago is 50 days, just 3 days longer than last year. This varies based on location and price, with lower-priced homes often selling more quickly.
Market Changes
While there haven’t been as many significant market changes in the latter half of the year, many breathed a sigh of relief when the Reserve Bank of New Zealand (RBNZ) lowered the Official Cash Rate (OCR) in August for the first time in four years, bringing it to 5.25%.
It’s anticipated that the OCR will drop further, possibly twice more this year, and may continue to decrease with each review until it falls below 3.00%. However, given the current economic climate, predictions are uncertain, and we’ll have to wait and see.
With the OCR drop came a slight reduction in interest rates, which we hope will continue to decline with each OCR adjustment. At present, we’re seeing clients opting for 6-month fixed rates, but personal circumstances should always be taken into account. If you’re considering re-fixing your loan, feel free to reach out for personalised advice.
What’s Next?
As the weather warms, borrowing costs decrease, and investors become more active, we expect the market to pick up. If you’re thinking about buying, don’t hesitate to contact our Queenstown mortgage advisers. We have in-depth knowledge of both local and national markets and can help you secure the best deal for your situation. Remember, lending isn’t a one-size-fits-all solution!