New Zealand’s average house price fell to $337,500 in May, down by $2,500 from April.

The number of properties sold was steady, with 6,291 in May compared to 6,210 in April.

May house sales are up 44 percent compared with the same time last year, although they are still 32 percent lower than May 2007.

REINZ president, Mike Elford, said the Real Estate Institute’s figures indicate a reluctance on the part of sellers to market their properties in what is perceived to be a buyers’ market.

“People are tending to hunker down and sit tight on their properties. This, combined with a seasonal trend for people to hibernate rather than put their home on the market in the winter months, has led to an acute shortage of houses on the market.”

He believes this trend will continue through June and July.

“Traditionally, people start thinking about selling around August and September as the weather warms up, but until then, we expect turnover to remain consistent with the number of properties that are put on to the market.”

• House prices are now 4.1 percent lower than in November 2007, when New Zealand’s median house price peaked at $352,000.
• House prices are now 2.2 percent lower than 12 months ago, when New Zealand’s median house price was $345,000.
• The number of properties sold rose from 4,372 in May 2008 to 6,291 in May 2009.
• The average number of days to sell a house was 42, seven days less than in May 2008.

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