The latest QV House Price Index shows the Otago region’s average home value has remained unchanged this quarter, Waitaki (0.3%) and Dunedin (0.3%) experiencing just minuscule growth on average since the start of December last year.
QV senior consultant Baylan Connelly said over the past 12 months the Waitaki district had seen a 4.5% increase in property values.
Since the last QV revaluation in August 2023, the market had gone up about 9%, he said.
"What could have happened in Oamaru is that there’s a bit of a two-tier market, so your first home-buy market under $450,000 is still pretty steady, still pretty flat, since 2023.
"But there seems to be a pretty strong market for modern designs, new builds and lifestyle properties, and with people looking to relocate to the district."
The "top of the market" was not affected by interest rates but the "first home-buy market" seemed to be impacted by current economic conditions, such as the high cost of living and rising rates, Mr Connelly said.
There was "optimism for more growth" and a more stable market towards the end of autumn, when interest rates would drop.
"It’s a tough one, because there’s still people on those still higher interest rates, but a lot of the people in the property market who have a mortgage will come off those higher rates in around May during this year.
"People will come off a 6.5% or 7% interest rate down to a 5% interest rate," he said.
The Waitaki district was "just past the bottom of the market".
Despite a drop in interest rates, other factors, such as job layoffs, had left people hesitant to take on new mortgages, although the overall economy seemed to be "in a positive trend", Mr Connelly said.
The average price for a home in the Waitaki was $465,000, the top quartile being $700,000 and the bottom quartile $348,806, he said.
