NZ median house price rises in October: REINZ

Thursday 13th November 2008

New Zealand's median house price rose in October, suggesting the impact of the property downturn isn't as deep as had been feared.

The median price rose to NZ$335,000 last month, from NZ$330,000 in September, according to the Real Estate Institute of New Zealand. Prices declined 4.28% from the same month of 2007.

The figures belie predictions of a 30% slump in property prices in the past 12 months, according to institute vice president Peter McDonald. "Despite predictions of gloom and doom" the latest month points to "a rosier picture," he said. "People's confidence in real estate is returning."

Prices rose from a year earlier in five of New Zealand's 12 regions, according to the report. The rate of sale fell to 47 days from 52 days in the previous month. Still, the number of sales fell to 4,469 from 6,854 in October 2007.

The central bank is poised to cut the official cash rate by at least 50 basis points next month, extending the deepest easing cycle since the OCR was introduced in 1999. The economy is lurching through its first recession since 1998 and some economists say growth may not revive until 2009.

To view the house prices in your area click here for housing commentary or use this link to compare house prices in a graph.

By Jonathan Underhill

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