The average house price was steady at $330,000 September, unchanged from August. The number of properties sold, however, continues to fall with just 4,499 sold in September 2008 compared with 5,894 in September 2007.

NZ housing market activity is now less than half what it was in 2003, when 10,686 houses sold in September.

Real Estate Institute of New Zealand (REINZ) President Mike Elford says the September figures reveal no dramatic trends and are similar to last month’s result, albeit in a sluggish market. The lower than normal volume of properties being listed is a reflection of people’s resistance to selling at a lower price than could have been obtained until recently.

Mr Elford believes they are also waiting to see what the Reserve Bank will do with the Official Cash Rate.

“There was little impact on the housing market with the 0.5 percent cut last month. It will be interesting to see if the cut anticipated later this month has any effect. We would hope to see some relief with the retail banks dropping their interest rates.”

• House prices are 6.1 percent lower than a year ago, when New Zealand’s median house price was $351,500.
• Prices are down 6.25 percent from their peak of $352,000 in November 2007.
• The number of properties sold fell from 5,894 in September 2007 to 4,499 in September 2008.
• The average number of days to sell a house was 52, the highest September figure since at least 1999.

Compared with prices in August, seven out of New Zealand’s twelve regions reported price falls in September, four reported rises and one reported no change.

On an annual basis, eleven of the twelve regions saw a fall in prices and one reported a rise.

Annual New Zealand House Price Changes