Dunedin Market Report - February 2024

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

A positive for sellers was the median number of days on the market at 39 which is 23 days fewer than last February. If you’re currently for sale and taking much longer than this to sell, it may be time to revisit your asking price expectations, presentation or investment in marketing. There’s little point staying on the market and helping other homes around you sell.

Despite the large number of available homes for buyers to choose from (677 at this time) the median days and the number sold in February prove that buyers will act if they see value. There were 186 sales. A substantial increase of 39.8% compared to February 2023.

There are looming changes to government policy, but also reserve bank lending policy, and it will be interesting to see what affect these have on our market. In many ways they may balance each other out. The reintroduction of interest tax deductibility will help some investors, while the change to a 2 year bright line will ease some concerns over investment.

However, introducing debt to income ratios of 6 x income for owner-occupier lending and 7 x income for investment lending (with an exclusion for new homes) will no doubt affect the borrowing capacity of many smaller investors.

Our advice for buyers, act now. You have a great selection to choose from and prices seem unlikely to come down. Our advice for sellers, make sure your home is well presented and priced correctly so you can move on with your future plans while the market remains stable.

Dunedin Stats Graph median and volume of sales. Source REINZ

Keeping your emotions in check when selling your home

Your home is likely to be one of your biggest financial assets, but often it’s also the place you raised your children and spent many happy hours with friends and family. Selling your home can evoke strong emotions, but here are a few strategies to help you keep those emotions in check and achieve the best result.

Home vs property
It’s natural to have second thoughts about selling what you think of as ‘home’ and leaving behind all the memories connected with it. As soon as you decide to sell, start thinking of your ‘home’ as your ‘property’ - an asset that you wish to sell and that you want to make as appealing as possible to others who are looking to buy.

Start with a clean slate
When preparing to list a property for sale, it’s important to declutter and depersonalise your home which means removing your family portraits, knickknacks, souvenirs, diplomas and mementos. By doing so, you’re making it easier for potential buyers to envision themselves and their possessions in the house. Packing up your personal items and storing them out of sight early in the process can also help you come to terms with your emotions.

Remember your ‘why’
When you start to second guess your decision to sell, remind yourself why you’re doing it and what you have to look forward to. Make a list of and put it somewhere prominent. Whether you’re downsizing, upsizing, retiring or moving closer to family, keep coming back to the upside and what motivated you to sell in the first place.

Find a sales consultant you trust
Once you’ve made the decision to sell, it’s critical to choose a sales consultant and a company that you trust – someone who has expert local knowledge and keeps you informed throughout the process. Make sure the sales consultant can show you how he or she will maximise competition for your property while minimising any potential complications. Once you’ve found the right person, take their advice on board, present your property well and you can be assured of a great experience.