The median sale price was $414,000 for August, a record for Dunedin City and up from $400,000 in July. This continues the upward trend into new territory.
The number of sales was 170, up from 135 in July and 140 in August 2017. The median number of days to sell was only 25, a further drop in time to sell from 27 last month.
Stock levels are beginning to rise again with a healthy increase to over 300 listings after the low of 270 last month.
We expect to see an active market over the coming months as buyer and seller confidence spreads. There are a number of factors contributing to this. Buyers are more comfortable with general forecast of interest rates remaining low as opposed to predictions of an increase over the past year. The market has adjusted to the new normal, with loan to value restrictions now deeply integrated into the market and some more certainty around government policy such as Bright Lines Tests on capital gains and foreign buyer bans.
Investors are still a little reluctant with further talk of tax changes and significant amendments to the Residential Tenancies Act proposed on top of the already more stringent regulations around healthy homes. Some investors are seeing this as an opportunity to stand out with quality properties attracting quality tenants but we are also seeing some leaving the market who are looking for easier forms of investment.
Joe Nidd AREINZ
Liz Nidd FREINZ