A new year has started and no-one will be sad to see 2020 gone. The overwhelming feature in residential real estate in 2021 so far is a continuing drastic shortage of listings.
The Real Estate Institute reports that as well as a national shortage, 16 regions have reported a record shortage of stock.
So, it’s not surprising that, alongside falling interest rates, house prices are rising fast, with record median prices in many districts, including Dunedin. The median sale price in Dunedin is now $585,000.
A shortage of listings continues to be the case as we begin a new round of scheduled open homes. The number of all listings in Dunedin City as I write in mid-January is again below 200 at 197 but a lift in numbers is expected in the next few weeks.
My advice to prospective vendors is ensure you engage an experienced agent who has a good record in negotiating top prices. The market is changing so rapidly an appraised price of a few months ago is now almost certain to be out of date.
For buyers, the best advice I can give is be aggressive in your offer price and don’t be indecisive if you find a property that comes close to meeting your needs. I am still trying to help several buyers who have been looking to purchase for more than a year and the tale, as you’d expect, is a sad one. Their money can’t buy near what it would have 12 months or more ago.
My team has some great new listings coming up – across all price ranges. We even have some new sections on the horizon which should be of interest to those looking to build. By the way, building in this rising market makes a lot of sense. While building costs continue to rise as well, a new build might be a much better option for those frustrated by the lack of choice in existing homes.
So, best wishes for this new year in all property dealings.