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

The median price rose by more than $46,000 compared to June last year, with prices rising 12% in Dunedin.

The number of sales across the region rose 12%, and almost 15% in Dunedin alone.

Despite the number of sales falling 28% compared to May, it's estimated there is only 11 weeks of supply remaining.