The region is second-highest in the country for a price increase over July sales compared with a year ago — shaded by Nelson’s 15.7% gain from $657,000 to $760,000.
Only a year ago, the middle mark for Otago sales was $657,000 in a residential market led by first-home buyers.
The only region in the South Island to reach negative territory was the West Coast, dropping 14% to $345,000.
Otherwise, Canterbury median prices were up 4.2% to just over $677,000, Marlborough 8.6% to $630,000, Tasman nearly 2% to $760,000 and Southland flatlining to $490,000.
Otago sales, up slightly to 383 properties for July, were the highest since 2020, while Canterbury’s 1132 sales was the best result for the month since 2003.
Nearly 170 of the Otago sales were in Dunedin, followed by 104 sales in the Queenstown-Lakes district.
Against the trend, houses typically took 58 days to sell.
The latest Real Estate Institute of New Zealand report for July showed first-home buyers were the most active in the region with investors less enthusiastic than before.
Institute chief executive Lizzy Ryley said Otago sellers were usually in line with market expectations.
“Attendances at open homes were good, especially in the first seven to 10 days of being listed for sale. Most properties sold by auction struggled to find a buyer, but the method of sale generally yields a result post-auction.”
Interest rates easing, high living costs and average levels of confidence were influencing the Otago market, she said.
“Local sales people predict the next few months will bring much of the same for the region, with the suggestion that the number of listings may pick up into the spring.”
Nationally, 11 out of 16 regions had a median price lift compared with the same month a year ago.
The median price increased nationwide by 1.8% year-on-year, reaching $767,250, with Auckland rising by 2.6% to $975,000.
Price growth in some areas suggested local markets were responding to buyer demand despite wintry conditions and property values were holding, while other areas declined in a mixed housing market.
Seasonally adjusted data indicated a slight increase in the national median price.
Overall sales activity had increased despite tightening listings ahead of spring.
Nelson again shone for year-on-year increases in the sales count — up 43.6%, from 55 to 79 sales.
Across the country, there was a 4% gain, from 6074 properties sold to 6319. Listings were overall down 4.2%.
Auctions represented 13.5% of all sales and the median number of days to sell declined by one day to 48 days.
The institute said real estate agents had found buyers were active during July, but not in a rush to purchase their next houses.
House sellers were realistic about meeting the winter market, many waiting until spring when more buyers came out and confidence lifted.
