The average house price in NZ rose to $337,500 in November, up by $2,500 from October.

The number of properties sold, however, was 4,279, down 45 percent from 7,837 sales a year ago.

NZ housing market activity is now less than half what it was in 2003, when 10,774 houses sold in November.

The figures are compiled by the Real Estate Institute of New Zealand, whose president Mike Elford believes the reduced number of sales is the result of a combination of factors including the general election and the global economy.

“Not surprisingly, some people are taking a wait-and-see approach and it is normal for things to slow down during a general election,” Mr Elford said.

“People are also watching for the effect of the interest rate cuts to come into the equation. There are many people who are still locked into fixed rates so it may be a while before these benefits can be felt.”

Mr Elford said it was unfortunate, especially for first home buyers, that now home affordability is the best it has been for a long time, buyers may find themselves facing stricter lending criteria.

Mr Elford added, “The message I am hearing frequently is that there continues to be strong demand for well priced stock.”

• House prices are 4.1 percent lower than a year ago, when New Zealand’s median house price peaked at $352,000.
• The number of properties sold fell from 7,837 in November 2007 to 4,279 in November 2008.
• The average number of days to sell a house was 44, the highest November figure since 2001.

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

Annual New Zealand House Price Changes