Dunedin Local Market Update - December 2024

The last couple of months have definitely seen an uptick in market activity, with more homes being sold in November 2024 than the year prior. Prices also appear to be on the rise yet again, and real estate agents are reporting increased activity. 

Here’s what’s happening in the Dunedin and Otago market right now and what you need to know if you are looking to buy a home in Dunedin....

HOUSE PRICES

The median house price in Dunedin City for November was $607,500 which is a slight decrease of 2% from the month prior and up 1.8% on this time last year according to the REINZ. 

Across the Otago region, the median house price sits at $708,000 for November. This also takes into account the Central Otago, Clutha, and Waitaki Districts too. This is down 1.7% on October 2024, but up 8.1% compared to this time last year.

MARKET ACTIVITY

As it’s been for the past few months, first home buyers continue to be the most active buyer group in the market, with a little bit of activity starting to show from investors. 

Most vendors are realistic about their price exceptions, however there is a chance this could change in the new year. With interest rates decreasing, we often see vendors expecting more for their homes and holding out for longer in order to get the prices that they want. 

Real estate agents report that open homes have been busy, especially for the properties that are presented well and are priced correctly. They report the market has been very active, even despite the higher cost of living, and most are cautiously optimistic that the market will continue to gain momentum in the new year. 

While sales by auction were lower for most of 2024, it’s reported that the auction rooms are getting busier and busier every week, with activity increasing and the majority of auctioned properties selling under the hammer.

During November, there were 281 properties sold in Dunedin City and 463 sold across Otago. Both of these figures are a decent jump on this time last year. 

MARKET CHANGES

Right now is proving to be a fantastic time for those wanting to buy a home. We are seeing decreasing interest rates (with the expectation the OCR will continue to drop in 2025), house prices are still on the lower side, and it’s relatively simple to get finance compared to the restrictions in the past. 

If you are keen to buy in 2025, we encourage you to come and see us to complete your pre-approval as soon as possible. This allows you to be ready to make a move when your dream home pops up. 

If buying is something you are keen to do, but aren’t quite sure if you are there yet… also come and chat to our team of Dunedin mortgage advisors! Often people are closer to buying a home than they think, and otherwise we can offer suggestions around saving for a deposit, reducing debt, and getting you to your home ownership goal quicker. 

Source: REINZ