Dunedin Property Report - June 2023 (May 2023 stats)

The median sale price in May remained at a similar level to recent months at $565,000. There was a significant increase in the number of sales, up 45 from April to 172.

The median days on the market has stayed steady at 47.

The number of listings available on Realestate.co.nz is the most significant indicator this month. With 560 properties available, there are around 100 fewer than at this time two months ago. As a result, buyers are competing harder for the properties available, with a noticeable increase in open home attendance and most recent Nidd Realty sales resulting in multiple offer situations.

As we head into the thick of election campaigning, the major parties are focusing heavily on housing policy as a cornerstone of their campaign. There are clear lines being drawn between the directions taken, with National promising to roll back many of Labour’s recent policies (especially in relation to investment properties) and Labour continuing to focus on home ownership, minimising property speculation and strengthening the rights of tenants. As a result, anecdotally, many investment property owners are in a holding pattern before deciding to sell or hold properties, leaving those looking to purchase an investment property somewhat limited for choice.

The other significant influence on the market in recent weeks was another hike in the Official Cash Rate. This took many commentators by surprise and led to further increases in interest rates. The silver lining for borrowers, however, was the Reserve Bank signalling that it has likely reached the end of its tightening cycle, providing a little comfort to mortgage holders who have faced a run of interest rate hikes.

Joe Nidd AREINZ
Owner/Principal