New Zealand’s average house price fell to $350,000 in January, a decrease of $10,000 on last month but up from $325,000 in January 2009.

The number of properties sold fell, with 3,666 sales in January compared to 4,957 in December, according to the Real Estate Institute of New Zealand (REINZ).

January house sales were down marginally, by just 40 houses, compared with the same time last year. This was the lowest number of houses sold in the month of January since electronic records began in 1992.

REINZ president, Peter McDonald said residential property market activity was quiet last month
because of uncertainty over what actions the Government intended to take on the recently announced tax working group recommendations:

“Hopefully the market will start to pick up now things are a bit clearer after the Prime Minister gave his opening speech to Parliament on Tuesday.He indicated the Government has ruled out proposals to introduce a land tax, comprehensive capital gains tax or new tax on residential investment properties.”

• House prices are 7.7 percent higher than 12 months ago, when New Zealand’s median house price was $325,000.
• The number of properties sold fell from 3,706 in January 2009 to 3,666 in January 2010.
• The average number of days to sell a house was 43, a significant improvement on the 59 days needed in January 2009.

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

Annual New Zealand House Price Changes