Dunedin Property Report - July 2022 (June 2022 stats)

After May showed signs of a pick-up in sales numbers, June was a return to low turnover with just 122 sales for the month. For comparison, in June 2021 there were 208 sales, representing a very busy period when demand was high and listing numbers were very low at 276. With more than twice that number of properties now available and tougher conditions for buyers, the lower sales volume is an inevitable outcome.

The median sale price increased to $645,000 but this is likely influenced by the low sales numbers providing a greater variation in this statistic month to month rather than an actual increase in prices. At the front-line we are certainly seeing properties struggling to achieve the prices that were being paid in late 2021. Most vendors are pragmatic however, with prices still often around what we would have expected this time last year which, at the time, were being celebrated by vendors as all time highs.

One of the most significant influences in the past month has been the rapid increases in interest rates as banks factor in OCR increases and costs of wholesale funding. There has been a glimmer of hope in recent days however, with at least two major banks cutting two year rates, possibly as a reflection of those wholesale rates dropping and, as some economists have suggested, a likelihood that the projected OCR increases may not go as far as previously thought. As a result, many are picking that mortgage rates are nearing their peak but only time will tell.

The section market remains very quiet with building continuing to prove a challenging prospect and banks hesitant to lend on new builds due to uncertainty associated with the industry at present. Thankfully, supply issues and a drop in demand are changing the landscape rapidly and the industry may return to some normality soon.

Joe Nidd AREINZ
Owner/Principal