The Colliers Market Review and Outlook 2022-23 has been released today which details and discusses trends in the Otago property market.
The report says Dunedin’s property market has shifted to a climate of uncertainty this year, characterized by weakening residential property values.
Sales volumes were down and homes were taking longer to sell, he said.
Despite the downward price trend, local property industry players didn’t think all was well with buyers.
MortgageMe manager Daryl Taylor said he’s encouraging any first-time buyers he meets to buy now because prices will pick up.
Despite changes to interest rates and minimum deposits, the most important factor dictating property values was supply, which Dunedin was still sorely lacking.
That’s why rents stayed high while prices fell, because people still needed housing.
There had been more activity recently as banks became more eager to lend money, but it was possible the market could bounce back quickly, so he suggested people get in while they could, he said.
Regional commentator for the Real Estate Institute of New Zealand, Liz Nidd, said that although prices had fallen, they were still significantly higher than they were three years ago.
It was difficult to look to buy because there was so much conflicting information about demand and prices.
Many did not enter sales with a clear idea of the market.
“I really feel for the buyers.”
There wasn’t the same sense of fear and urgency to miss a sale as before, but it still wasn’t an easy market to buy, she said.
The report showed Queenstown bucking the national trend of downward pressure on property prices.
Listings declined as owners waited out the period of uncertainty, resulting in lower sales volume.
Wanaka had a two-tier residential property market, with the high end showing strong performance despite continued strong demand and the lower end receiving limited demand as properties took longer to sell.