Dunedin Market Update - August 2024
It’s no secret that the housing market has slowed down over the winter, however there are some signs that things might be getting ready to move. With inflation and interest rates slowly beginning to move in the right direction, it’s looking like Spring could be the start of a phase of new growth in the market.
The average national house price sits at $753,000, so let’s take a look at how Dunedin stacks up.
HOUSE PRICES
The average house price for Dunedin City sits at $575,000 for July, according to REINZ’s July report. This is down 8.7% on this time last year which is significantly more than the national average decrease of 2.2%
Across the Otago region, the median house price sits at $665,000, which is up 2.4% on June and down 5.8% on July 2023.
MARKET ACTIVITY
The most active group of buyers in Dunedin at the moment are owner-occupiers who are making the move to a new property, with those looking to downsize being the most common.
Real estate agents report that vendors are still trying their luck at higher prices, but are willing to readjust and negotiate when needed. They report that open homes are generally busy when a property is first listed, but then tends to drop off. This means for those looking to buy, homes that have been sitting on the market for a while could be good options with less competition and more willingness on the vendor to negotiate.
While it feels like the market is a bit slow, with properties sitting on the market a lot longer than they have in the past, the number of sales for Dunedin in July actually shows increased activity. There were 179 properties sold in Dunedin in July, which is up from 144 in June and up well over 50+ from 121 in July 2023.
On average across the Otago region, properties are taking 47 days to sell, which is up 3 days on this time last year. This is still less than the national average, which currently sits at 49 days to sell.
MARKET CONDITIONS
It’s still impossible to predict what will happen in the housing market, however we are expecting that Spring will bring an increase in houses on the market and more choice for buyers. The first reduction in the Official Cash Rate in 4 years bodes well for interest rates continuing to drop and inflation beginning to ease, which will in turn put less pressure on homeowners and make it easier for those who want to buy, to be able to do so.
However with a drop in interest rates often comes a rise in house prices and an increase in interest and competition, so we encourage potential buyers to get in touch asap and we can help you navigate the best time to buy depending on your individual circumstances.
Contact our Dunedin mortgage advisors today - our team lives and breathes the local market and can offer expert tailored advice. Get in touch on 03 471 8825 or click the Contact Us tab to fill in our online form and we'll be in touch asap.