The average house price in Dunedin has fallen by 3%, compared to this time last year.

But there's been a slight monthly increase, and the number of sales is also up across the city.

Agents say first home buyers are more active throughout Otago than they have been in a while.

But the number of active investors has dwindled slightly.

Last month almost 250 properties were sold in Dunedin.

The average price was $270,000.