Dunedin’s house prices have increased 10.9% from $505,000 in October 2019 to $560,000 in October 2020. Sales numbers were down 8% from October last year to 183. The decrease in sale numbers is a continuing indicator of the shortage of properties available for sale. The median number of days on the market was just 23.
Open homes continue to be very busy with large numbers attending and conditional buyers are finding it very difficult to compete with unconditional buyers.
Listing numbers are up a little with 273 listings on realestate.co.nz today compared with 249 in the last report.
The time taken to approve lending is still an issue for many buyers, with banks taking 10 - 15 working days and often asking for more detail. However, the removal of Loan to Value restrictions (LVRs) in response to COVID-19 has reinvigorated the investor market with many able to access significantly more finance for the first time in years. This is further adding pressure in certain price brackets where properties are suitable as rentals.
The Reserve Bank and Government have indicated that they will be revisiting the LVRs soon. The easing of restrictions has been deemed to have stimulated the economy as intended but the unintended consequences are now having a significant impact.
Joe Nidd AREINZ
Liz Nidd FREINZ