Dunedin Local Market Update - October 2024

The start of Spring is a positive time for most in the real estate market. It’s when vendors often look to list their homes if they have been holding off over winter and it’s when we often tend to see an increase in buyer activity and interest. 

Here’s what’s happening in the Dunedin and Otago market right now.... 

HOUSE PRICES

The median house price in Dunedin City for September was $605,000. This is up 6% on this time last month, and up 4.3% on this time last year according to the REINZ report for September. 

Across Otago, the median house price sits at $685,000 (remembering this takes into account Waitaki, Clutha and Central Otago too). This is up 6.2% on last month which is inline with the Dunedin increase and up 3.8% on this time last year, which is just less than Dunedin’s percentage gain.

MARKET ACTIVITY

The most active buyer groups in Dunedin right now remain the first home buyers, however those looking for properties at the top of the market are also starting to become more active. We are also seeing renewed interest from investors, with a number coming through our doors seeking pre-approvals. 

Real estate agents are reporting variances between vendors, with some happy to adjust their pricing to what the market is offering, and others very staunch in their price expectations. This has meant that many properties are taking their time to sell, with the average time for an Otago property to sell, now sitting at 54 days. 

Agents are also reporting that new homes to the market often get great attendance at open homes, but that interest drops off after a couple of weeks - again adding to that time to sell period. This means properties are either selling fairly quickly in the first few weeks, or sitting on the market for sometimes a few months. 

Sales via auction have picked up, with auctioneers reporting that a good chunk of auctioned properties are now selling under the hammer, and if they fail to do so, often selling afterwards in negotiation. 

During the month of September there were 172 properties sold in Dunedin City and 342 across Otago. For both areas this is very similar to what was seen the month prior 

MARKET CHANGES

There was good news at the start of October with the Reserve Bank dropping the Official Cash Rate (OCR) another 0.5% to 4.25%. This is two consecutive drops in a row after 4 years of increases and such good news for buyers.

The reaction was almost instant, with some of the main banks dropping their interest rates, and then others following suit. If you’re on a longer fixed rate, the impact may be minimal today but you will benefit you when the time comes to renew. If you are on a floating or variable rate, you’ll already notice a slight difference. 

There is another Reserve Bank review in November and it’s expected by economists and banks that there will likely be another drop, but right now it’s a waiting game with fingers crossed!

If you are looking to buy a home in 2024 or get ready to buy in 2025, then reach out to our Dunedin mortgage advisors here at Loan Market. We can help get you prepared so you can move when the time is right, or advise you on your current lending situation.