The average house price in NZ fell to $328,500 in December 2008, down $9,000 from the previous month.

The number of properties sold was 4,302, down 23 percent from 5,597 sales a year ago.

NZ housing sales are running at half the levels of 2003, when 8,669 houses were sold in December.

The figures are compiled by the Real Estate Institute of New Zealand, whose president Mike Elford believes the figures are, in part, evidence of a correction of wrongly inflated values in some areas.

Taking an optimistic view, he said: “The forthcoming Government Economic Summit will be looking at ways of encouraging positivity in the economy and housing is always a good way to get things going. Lower interest rates and tax cuts will increase people’s confidence and with Government commitment to further liquidity, I believe we can expect to see a market comeback not too far off.”

The Reserve Banks of New Zealand, however, has forecast an average price fall by 2010 of about 16 percent from the peak of $352,000 in 2007. To date, prices are down 6.7 percent.

• House prices are now 6.7 percent lower than in November 2007, when New Zealand’s median house price peaked at $352,000.
• The number of properties sold fell from 5,597 in December 2007 to 4,302 in December 2008.
• The average number of days to sell a house was 45, the highest December figure since 2000.

On an annual basis, nine of the country’s twelve regions saw a fall in prices. Prices were up in one region and unchanged in two.

Annual New Zealand House Price Changes