Dunedin Market Update - May 2024
Dunedin has become somewhat of a rockstar market this year, with the average home price rising quicker than many other regions around the country. The average home price in the city sits at $629,000, rising 9.4% compared to this time last year.
It appears the market is moving relatively faster than what we have seen in the past couple of years, with people feeling confident about listing their home on the market. In fact April saw 206 new property listings, which is up a whopping 52% on this time last year, and shows the confidence that is coming back, despite heading into the cooler months.
The number of homes sold has also increased, with 20% more sales completed in April 2024 than in April 2023. The number of days a property sits on the market has also decreased, with the average home now remaining on the market for 41 days before selling, down 9 days compared to April 2023.
The majority of homes selling right now sit in the under $750,000 bracket and are being snapped up relatively quickly, many by first home buyers . There were 24 sales over $1,000,000 in the city and, as expected, these properties take slightly longer to move on the market.
While first home buyers remain strong in the city, we are also seeing renewed interest from property investors, as well as ‘mum and dad’ investors. It will be interesting to see what impact the July 1st changes to the Brightline test make on the investor market and what potential pressure this could put on prices. Changes to interest deductibility coming this year will also make it a much more appealing market for investors. For first home buyers looking to get into the market, we recommend doing so sooner rather than later, as prices are likely to continue to trend upwards.
Interest rates and the cost of living still put pressure on the market, with neither appearing to be easing anytime soon. The Reserve Bank kept the Official Cash Rate stable at 5.5% at their April meeting, and it’s expected that the May meeting will see no change either, as inflation is still higher than the RBNZ would like to see before they make any changes in lowering the rate.
Interest rates still remain on the higher side (compared to what we’ve seen in past years), however experts predict they will likely begin to drop towards the end of 2024 or early 2025. We are starting to already see some downwards movement in the rates now, as banks jostle for potential borrowers. There are some great cash back offers available right now, and we can help you negotiate the best deal with your lender.
As always, if you are considering buying a property anytime soon, we encourage you to get in touch with our Dunedin based mortgage advisors. We are all over the local and national market trends so are able to give you tailored advice on market conditions. Remember our client referral program, refer a friend and receive a $100 thank you voucher from us!
Call us on 03 471 8825 or click here to book your appointment online.