Figures for May show a notable 30.9% year-on-year increase in total housing stock available in the region — well above the national rise of 5.6%. At the same time, new property listings surged 29.3%, placing the region among the top two areas nationwide for fresh listings.
Sarah Wood, the chief executive of realestate.co.nz, said the figures for the region showed "quite a significant shift".
"I would say that it reflects that you have a lot of new builds coming to market ... as well as just existing dwellings ... there’s a lot of developments and there’s a lot happening in that space."
Buyers were now in a stronger position with more time to browse and compare properties.
"It means that they’ll have lots of options ... and it will also mean that people have the chance to look around the market more and do potential due diligence on a property as well."
Across the country the national average asking price remained steady — up just 0.8% year on year and 1.4% month on month — but there was a drop in the average asking price in Central Otago and Southern Lakes of 6% to $1,382,741.
The region was one of nine that registered year-on-year declines, according to the report.
"Normally, I’m reporting that Central Otago and Southern Lakes has increased its average asking price. It is the most expensive region in the country, but this month it actually dropped," Ms Wood said.
On the ground, local agents are seeing the same trends — a well-stocked market with plenty of interest, particularly at the mid to lower price points.
Leanne Taylor, a real estate agent with Arizto in Central Otago, said while prices were dipping, it was not as simple as calling it a buyers’ market.
"There’s a lot of movement, particularly in homes priced up to $800,000," she said.
"The higher end and sections are taking longer to shift, but first-home buyers will welcome the increased options."
She advised buyers to take advantage of winter conditions.
"If you fall in love with a home in winter, chances are you’ll love it even more in summer."
For sellers, her advice was to focus on realistic pricing and strong presentation. "While competition is higher, well-presented homes priced realistically are still selling well, particularly if they appeal to emotional buyers. The key is in presentation and a smart marketing package."
Rebecca Ireland, from Tall Poppy Real Estate in Alexandra, agreed the region’s high stock numbers were reflected in her day-to-day experience.
"There is quite a lot on the market compared to other years — probably the most I have ever seen," she said
But her view was that it was too early to draw any big conclusions from the shift.
She agreed properties at the higher end of the market were taking longer to sell, but in that price bracket there was plenty of interest from out-of-town buyers.
Ms Wood said her data showed Australian buyers were browsing Central Otago and Southern Lakes homes, in particular.
"It has high appeal to both a winter ski audience as well as summer visitors."
Further down the island, Southland stood out with a contrasting trend. The region’s average asking price rose 6.5% year on year to a record $564,290 — the highest since records began 18 years ago. However, the region had a month-on-month decrease in new listings.
Ms Wood said looking ahead, realestate.co.nz would be closely watching market movements after the Reserve Bank’s recent official cash rate cut and the resulting drops in interest rates.
