The average house price in New Zealand rose to $349,000 in March, up from $337,500 in February.

The number of houses sold was the lowest in March for at least 10 years. The drop in sales was especially noticeable for properties priced under $400,000 leading to an increase in the average selling price as higher priced properties made up an unusually high proportion of sales.

While confidence – especially in the bottom end of the market – appeared to have fallen, the earliest Easter holiday in many years had its part to play in the subdued market, said REINZ National President Mr Murray Cleland.

“Easter reduced the month to just 18 business days, but there is no doubt that confidence has taken a knock especially in the lower end where sales of properties worth under $400,000, fell 23 per cent compared with the overall sales drop on February of 19 per cent.”

Citing the fact that of New Zealand’s twelve regions seven experienced reduced prices and only four rose, with one unchanged, Mr Cleland said that the unusual factors in March could not hide the fact that many prices around the country were weaker.

“Add to that the likelihood of a growing number of properties coming on the market either through bank-forced sales, or through the collapse of property investment schemes, which will put more pressure on the market.”

• House prices are 1.6 percent higher than a year ago, when New Zealand’s median house price was $343,500.
• Sales of properties fell from 10,989 in March 2007 to 5,129 in March 2008. This was the lowest number of sales in March since at least 1999.
• The average number of days to sell a house was 40, the highest in March since 2001, but 10 days less than the average 50 days in February 2008.

Compared with prices in February, four out of New Zealand’s twelve regions reported price rises in March, seven reported falls and one was unchanged.

On an annual basis, six of the twelve regions saw an increase in prices, one saw no change, and five reported falls.

Annual NZ House Price Changes