The Dunedin median price for February was $590,000, up from $575,000 in February 2023, consistent with the last 12 months of results. It appears that our predictions that Dunedin has found its new normal seem well founded, at least for now until we see any significant reductions in mortgage interest rates.
Another month with the median value at $570,000, making it 3 months in a row at this level. Increased buyer activity has been matched by increased choice of property, however, listing volumes are starting to decline which is often the way during Winter. There was a total of 127 sales in April compared with 125 the year previous. Median days on the market was 44, similar to last month and considerably shorter than February which was 62 days.
All of this points to renewed confidence in the Dunedin market, and a belief that we may have seen the worst of the financial cycle and mortgage rate rises. Recent news such as lower long-term mortgage rates, an easing in the LVR (lending to value ratio), and adjusted rules around assessing a borrower’s expenditure have helped bolster activity.
However, property still remains very price sensitive, and presentation matched with the right selling strategy, or correct list price is key to getting sold.
There is increased pressure on rental property supply and rents are rising as a result. Investors are starting to take interest again, so right now there is a window of opportunity for first-home buyers to act with less competition. For anyone looking to sell and upgrade the relative price difference is likely the lowest it will be, so we urge you to act now.
Homes that present well in the Winter months with good sunshine hours will attract interest, and those sellers will be faced with less competition from other listings.
