New Zealand’s average house price rose to $355,000 in October, up from $350,000 in September and $335,000 October 2008.

The number of properties sold fell, with 6,091 sales in October compared to 6,464 in September, according to the latest figures from the Real Estate Institute of New Zealand (REINZ).

October house sales were up 36 percent compared with the same time last year, although they are still 31 percent lower than October 2006.

REINZ president, Peter McDonald said the steady return of property values was a positive sign:

“The rises aren’t, in most cases, dramatic, but slow and steady over the past few months as confidence returns to the market. For the first time we are over the peak of prices in 2007 which is a very reassuring milestone.

“I believe the market will firm even further with the better economic news we’re hearing more and more frequently,” Mr McDonald said.

• House prices are now 0.8 percent higher than in November 2007, when New Zealand’s median house price peaked previously at $352,000.
• House prices are 6 percent higher than 12 months ago, when New Zealand’s median house price was $335,000.
• The number of properties sold rose from 4,469 in October 2008 to 6,091 in October 2009.
• The average number of days to sell a house was 31, a significant improvement on the 47 days needed in October 2008.

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

Annual New Zealand House Price Changes