The volume of home sales in Dunedin in March was down 16% compared with March last year.

However statistics for the month from the Real Estate Institute of New Zealand show the median price across Otago rose by $17,500.

Institute director Liz Nidd says first home buyers remain cautious and investors are also taking a wait-and-see approach.

Vendors are being realistic about their price expectations although the number of listings is lower than expected for the time of year.