New Zealand’s average house price rose to $346,750 in August, up from $340,000 in July and also up 5% since August 2008.

The number of properties sold was down slightly, with 5,878 sales in August compared to 6,014 in July, according to the latest figures from the Real Estate Institute of New Zealand (REINZ).

August house sales are up 39 percent compared with the same time last year, although they are still eight percent lower than August 2007.

REINZ president, Mike Elford said the latest statistics are in line with other signs that financial commentators have suggested point to a recovery from recession.

“Like those commentators, we would be reluctant to say the hard times are over, but if the trees are not yet in full bloom, there are certainly buds in view,” Mr Elford says.

“People are sitting tight in their homes, enjoying the relief of lower interest rates which is resulting in limited stock available. Where properties are coming on the market, we’re seeing multiple offers which is good for sellers,” Mr Elford says.

• House prices are now 1.5 percent lower than in November 2007, when New Zealand’s median house price peaked at $352,000.
• House prices are 5 percent higher than 12 months ago, when New Zealand’s median house price was $330,000.
• The number of properties sold rose from 4,220 in August 2008 to 5,878 in August 2009.
• The average number of days to sell a house was 34, a significant improvement on the 55 days needed in August 2008.

On an annual basis, eight of the country’s twelve regions saw a rise in prices and four regions saw a fall in prices.

Annual New Zealand House Price Changes