Otago's prospective home owners are experiencing the side effects of a drop in the number of properties for sale.

The median price rose by more than $13,000 compared to May last year, with prices rising 8% in Dunedin.

Sales across the region for May rose 32%, up almost 40% in Dunedin alone.

Regional commentator Liz Nidd says the region only has 11 weeks of inventory on hand.

She says it's unlikely the supply situation will ease until spring at the earliest.