12 Aug 2008

Property market rebounded in July - institute

9:01 pm on 12 August 2008

A recovery in the property market in July is unexpected, says the Real Estate Institute.

The institute says the national median price is $340,000, the same as in June, though nine of the 12 districts surveyed recorded increases in their median prices.

Auckland was an exception, with a further fall in the median price from $435,000 to 421,000.

The institute says that figure follows what it describes as a "dismal" number of sales.

A 2.2% fall in property values in the past year suggests the housing market slump will not be as deep as previously thought, says Quotable Value.

Figures released on Monday by government agency Quotable Value show a 2.2% decline in the residential property market nationwide for the 12 months to July.

For the year to the June quarter, however, Quotable reported a rise in prices of 0.1%.

The average sale price held steady at $393,370.

Quotable Value spokesperson Blue Hancock said a rise in the number of property listings, coupled with falling interest rates and low unemployment, could result in the market stabilising within two months.

Mr Hancock said the market is very resilient.

Some business analysts, however, believe a recovery will take much longer.