The average house price in NZ fell to $325,000 in January 2009, down $3,500 from the previous month.

The number of properties sold was 3,706, the lowest figure in 17 years and down 29 percent from 5,186 sales a year ago.

NZ housing sales are running at less than half the levels of 2004, when 8,382 houses were sold in January.

REINZ president Mike Elford commented:

“This is the lowest figure we have seen in recent years by quite some margin. Before 2008, the lowest turnover of houses we have seen on the New Zealand market was January 1992 when the number of houses sold was 4,427. We’re now well below that.

“It’s clear evidence that people are treading cautiously and reflects the uncertainty of the wider economic environment.”

He said falling interest rates had yet to have the effect of vitalising the market.

Another worrying trend is the length of time it is taking to sell a house – an average of 59 days in January 2009 compared with 49 in January 2008 and 45 days in December 2008. This is the longest period since January 2001 when houses took on average 64 days to sell.

• House prices are now 7.6 percent lower than in November 2007, when New Zealand’s median house price peaked at $352,000.
• The number of properties sold fell from 5,186 in January 2008 to 3,706 in January 2009.
• The average number of days to sell a house was 59, the highest January figure since 2001.

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

Annual New Zealand House Price Changes