First home buyers "most active group" in Southern Lakes

The Real Estate Institute of NZ (REINZ) is reporting that first home buyers are more active in the Southern Lakes than top end purchasers.

REINZ CEO Jen Baird says that people who are looking to buy in the expensive end of the housing market are taking a cautious and slower approach.

“First-home buyers were the most active buyer group in the region for May. Investors have adopted the ‘wait and see’ approach. There were reports of a decline in the buyer pool for higher-end properties, which is reflected in the low attendance at open homes for such properties.

"Properties marketed by asking price, auction, price by negotiation and deadline sale are the most popular properties in this region.

"Motivated vendors are prepared to listen to market feedback and adjust their expectations. However, some vendors are not prepared to adjust to meet market expectations in the auction room.

"Local agents report that high interest rates, the lack of buyer urgency, the condition of finance and job security continue to impact market sentiment.”

REINZ data shows the Southern Lakes experienced a small drop in median prices between May and June 2024 but a 6.2% increase over the past 12 months.

The median price reported by REINZ was $1.4 million for June 2024, up from $1.3 million in June 2023.

The number of properties sold has dropped dramatically though from 108 in May 2024, to only 28 in June 2024. In June 2023 23 properties were sold.

In Central Otago prices have dropped 10.8% from June 2023 with the median price sitting at $705,000 in June 2024 down from $790,000 in June 2023.

Here's the data for the whole of the Otago region: