The mood of the real estate market in Dunedin is "sobering", with sales down and prices static compared with last year, Liz Nidd, Otago regional representative on the board of the Real Estate Institute of New Zealand, says.
Analysis of the local market, which includes Dunedin and Mosgiel, showed 147 houses were sold in September, down about 30% from 212 in September 2009.
The median sale price remained relatively static at around $255,000 - moving only a few thousand either way from month to month, Mrs Nidd said.
"Prices have stayed at a similar level for about three years."
Days on the market - the length of time it takes most homes to sell - was well up, at around 40 days.
"This shows the continued hesitation buyers are feeling," Mrs Nidd said.
The shape of the market was "bottom heavy", with 103 of the 147 homes sold valued at less than $300,000.
Just five homes valued at $600,000 or more were sold in each of 2009 and 2010.
However, the "listings inventory" for the Dunedin market - the number of new listings of homes - had gone up slightly to 30 in September.
The caution among buyers and vendors was fuelled by uncertainty over the rise in GST and tax cuts, bad spring weather, as well as swirling fears of a "double-dip" recession, Mrs Nidd said.
With summer traditionally the best time for real estate sales, Mrs Nidd was hoping for good weather for the market.
