New Zealand’s average house price rose to $335,000 in March 2009, up $5,000 from the previous month.

This is the second month in a row property prices have risen, according to the latest figures from the Real Estate Institute.

The number of properties sold also rose, from 5,228 in February to 6,694 in March.

March house sales are up almost one-third compared with the same time last year, although they are still 39 percent lower than March 2007, when sales peaked.

REINZ president Mike Elford commented:

“I’m hearing that March was the best month for some time with properties available for sale and genuine buyers and sellers ready to meet market prices.”

Mr Elford cautioned, however, that it was too early to predict recovery:

“We need to read the figures in the context of December, January and February figures being light months in terms of volume. And while there is certainly a significant return to healthier numbers, we also need to be mindful we are now coming into a period of seasonal drop off in sales.”

“The indications are that there is renewed interest in the real estate market stimulated by the drop in interest rates and the affordability of properties,” Mr Elford said. “We’re seeing investors back too, moving away from equities and returning to controlled investments such as real estate.”

• House prices are now 4.8 percent lower than in November 2007, when New Zealand’s median house price peaked at $352,000.
• House prices are now 4.0 percent lower than 12 months ago, when New Zealand’s median house price was $349,000.
• The number of properties sold rose from 5,129 in March 2008 to 6,694 in March 2009.
• The average number of days to sell a house was 44, four days more than in March 2008 and the highest March figure since 2001.

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

Annual New Zealand House Price Changes