Dunedin Property Report - June 2022 (May 2022 stats)

As expected, there was a pick-up in activity in May to compensate for the April holiday lull. What was even more encouraging is that there were more sales in May 2022, with 169, compared with 155 sales in May 2021.

The median days on the market extended to 49, which is a much more accurate reflection of reality as discussed in our previous month’s report. The good news is that we are beginning to see properties that have sat on the market for some time now attracting interest and selling. There has certainly been some downward pressure on prices but where sellers have a realistic expectation, the buyers are there waiting and we are even still seeing some unconditional buyers ready to offer.

The number of listings available on RealEstate.co.nz is back below 600, likely reflecting that buyers are becoming a little more active and beginning to rebalance the market.

Feedback from mortgage brokers is that the relaxation of the CCCFA lending restrictions has encouraged buyers to reinvestigate finance options so they can get back into the market and buy while there is more choice available and less pressure from market conditions. We have seen this activity reflected in improving open home numbers in recent weeks.

Section sales were steady with 8 sections confirmed but feedback from buyers is that it is still difficult to obtain fixed price quotes and timelines from building companies. Given how few people we are encountering who have confirmed their building contract, we expect building companies to be looking to find ways of accommodating people, despite the supply issues, in order to get more contracts in place once the backlog of current builds has cleared.

Joe Nidd AREINZ
Owner/Principal