The average house price in NZ rose to $335,000 in October, up by $5,000 from September.

The number of properties sold, however, was similar to last month’s very low figure of 4,469, down 35 percent from 6,854 sales a year ago.

NZ housing market activity is now less than half what it was in 2003, when 10,923 houses sold in October.

Buoyed by last month’s price rise, Real Estate Institute of New Zealand (REINZ) Vice President Peter McDonald says that a year ago, financial commentators were predicting a 30 percent fall in residential property values.

“But our figures show an overall decrease of just 4.28 percent from a year ago, and in fact, in five out of 12 regions, property sales values have actually increased.”

Striking an optimistic note, he added, “Going forward, the news is even better. Up-to-date reports post election show the level of activity has increased with more enquiries showing the market may be picking up. Uncertainty caused by the election has stabilised and with interest rates and fuel prices going down, people’s confidence in real estate is returning.”

• House prices are 4.3 percent lower than a year ago, when New Zealand’s median house price was $350,000.
• Prices are down 4.8 percent from their peak of $352,000 in November 2007.
• The number of properties sold fell from 6,854 in October 2007 to 4,469 in October 2008.
• The average number of days to sell a house was 47, the highest October figure since 2000.

Compared with prices in September, ten out of New Zealand’s twelve regions reported price rises in October and twp reported falls.

On an annual basis, five of the twelve regions saw a rise in prices and seven reported falls.

Annual New Zealand House Price Changes