The average house price in NZ rose to $330,000 in February 2009, up $5,000 from the previous month.
The number of properties sold also rose, from 3,706 in January to 5,228.
Despite the higher number of sales, this is still the lowest number of February sales for a decade. Last February 6,356 houses were sold and in February 2007 9,357 houses were sold.
NZ housing sales are running at about half the levels of 2005, when 10,145 houses were sold in February.
REINZ president Mike Elford commented:
“January was an exceptionally bleak month and there is no doubt the figures were affected by the holiday period. While we must still take a cautious approach, the February figures seem to indicate that lower interest rates and real estate as an investment option are having a positive impact on the market.”
The length of time to sell a house is still high, with an average of 62 days in February 2009 compared with 50 in February 2008 and 29 days in February 2004.
The New Zealand Herald reports comments from ASB economist Jane Turner, who reacted cautiously to the figures, saying:
“We place little weight on this month’s recovery. The trend in house sales remains flat despite some monthly volatility with housing demand yet to make a convincing recovery. While large declines in the mortgage rate have prevented housing demand falling further, the level of house sales remains weak. Potential house-hunters are either waiting for house prices to fall further or feeling cautious due to economic uncertainties. Higher deposit requirements are another hurdle for first home buyers.”
- House prices are now 6.25 percent lower than in November 2007, when New Zealand’s median house price peaked at $352,000.
- The number of properties sold fell from 6,356 in February 2008 to 5,228 in February 2009.
- The average number of days to sell a house was 62, the highest February figure since 2001.
On an annual basis, ten of the country’s twelve regions saw a fall in prices. Prices were up in two regions.
Annual New Zealand House Price Changes
| Region | Median Price February 2009 |
Change since February 2008 |
| Northland | $305,000 | up 7.4 % |
| Auckland Region | $421,500 | down 1.3 % |
| Waikato / Bay of Plenty / Gisborne | $316,000 | down 5.1 % |
| Hawkes Bay | $267,000 | down 1.1 % |
| Manawatu / Wanganui | $230,000 | up 1.0 % |
| Taranaki | $260,000 | down 1.9 % |
| Wellington Region | $375,000 | down 0.2 % |
| Nelson / Marlborough | $323,000 | down 8.2 % |
| Canterbury / Westland | $290,000 | down 9.4 % |
| Central Otago Lakes | $425,000 | down 17.5 % |
| Otago | $223,000 | down 3.7 % |
| Southland | $180,000 | down 10.4 % |
| New Zealand | $330,000 | down 2.2 % |