Local Dunedin Market Update - June 2023

Winter is well and truly here in Dunedin now, with a decent frost popping up in the mornings. The chill also has extended somewhat to the housing market, with the Dunedin market continuing to be relatively slow and stable over the past month. 


The median house price for Dunedin homes sold in May was $565,000, which is down 1.7% on April and down 11.7% on May 2022. This decrease of 11.7% is larger than the national average of 8.2%, but in line with many cities around the country.


While the prices are down, properties are moving, with 172 homes sold in the month of May. Compared to 133 in April, this is a decent increase, however homes are still taking a while to sell. Across the Otago region, properties are sitting for an average of 57 days before selling, which is an increase of 12 days on last year.


So who is currently in the market right now? We are seeing a lot of owner-occupiers active, either choosing to upgrade their home or downsize. Since the market is slower, there is a lot less pressure on buying and selling, which makes it a good time for this group to move in the market. Many of these people have also made decent amounts of equity in their homes over the past few years, which allows them some more movement.


Thanks to the recent easing of the LVR’s and some changes to the First Home products, we are now starting to see more first home buyers enter the market.  While it’s impossible to predict, it’s hoped that interest rates shouldn’t increase too much more, and therefore those who can afford to service a mortgage are taking advantage of the lower home prices we are currently seeing. 


Across Otago as a whole, the average home price for May was $670,000 - a decrease of 6.9% on May 2022. This is below the median average decrease, as it takes in the market of Queenstown, which has defied the trends with minimal movements. 


If you are looking to buy your first home or to move homes, then get in touch with us. Even if you feel you are a way off purchasing, we have a number of options and can assist you in working out how much deposit you have available. You may be surprised how much you could borrow!


Contact our Dunedin mortgage advisers today and let’s get you on your way to your new home.