Local Dunedin Market Update - August 2023

In our last market update we mentioned how the winter chill had extended to the local housing market. Well Spring is on its way and likewise the housing market has started to thaw.

We are starting to see a lot more activity in the market, with real estate agents reporting higher attendance at open homes compared to the past few months. The lower to mid priced homes are faring the best, with first home buyers and second home buyers the most active in the market right now. 

We are still seeing reluctance from investors in the lead up to the election, with many holding off to see if we end up with a change in government. If we do have a change, it’s likely this will benefit investors, and we’d expect to see them return to the market in force. This is in turn likely to put more pressure on the market and create more competition for homes which will raise prices. 

If you are currently a first home buyer or an owner-occupier and can afford the current interest rates, then now is a good time to buy, with a number of homes available at lower prices and less competition. 

For July, the average home price was $625,000 which was a 6.8% increase on June and a 4.3% increase on this time last year. It’s clear the local market is definitely starting to move again, and potentially we may have reached the bottom of the prices a couple of months ago. 

In terms of sales volumes, there were 117 properties sold in July, compared to 148 this time last year. Again, many are choosing to hold off listing their home until after the election to see what happens there. We expect things to pick up drastically once this happens and the warmer weather begins. 

In terms of days to sell, properties are still sitting on the market for a reasonable amount of time before they sell. The current Otago average is 45 days which is more than the 10-year average for July.  This is likely due to the lack of pressure on buyers, with less competition.

Overall, if you can afford to service a loan currently, now is a great time to buy. House prices remain low, and while there isn’t a lot of stock, the competition is also low. If you’d like to discuss how much you could borrow, then get in touch with us today and we can work through this with you. Call our Dunedin mortgage advisors on 03 471 8825 today and let’s chat.