National median house price slips

Some of the heat may be going out of the property market.

The national median house price slipped in August from a month earlier, but the number of sales rose, says the Real Estate Institute of New Zealand.

The median for the month returned to the June figure of $310,000, having reached $313,000 in July, with 8562 sales in August compared to 7771 a month earlier. The median number of days to sell fell to 33 in August from 35.

Institute national president Howard Morley said the organisation continued to believe there would be no wholesale reduction in property prices, but the heat evident a year or two ago had gone out of the market.

The figures should give some comfort to the Reserve Bank that the property market was continuing to level out, Mr Morley said.

Yesterday's Reserve Bank decision to leave the Official Cash Rate at 7.25 per cent, with an implied threat it could be increased if inflationary pressures did not abate, would ensure interest rates remained at least at current levels.

That was an inhibiting factor in the property market, he said.

In metropolitan Auckland the median sales price in August was $393,750, up from $390,000 in July and $375,000 in August 2005. Sales volumes were up from 2480 in July to 2570 last month.

In Hamilton City the median price dipped to $303,000 in August, from $310,000 in July, but was up on the $290,000 in August 2005. The 385 houses sold last month were well up on the 309 in July.

The Wellington median sales price rose to $335,875 in August, from the July median of $330,000 and August 2005's $169,250. Last month 836 houses sold, up from 789 in July.

The Christchurch City median of $291,500 in August was up from $285,000 in July and $275,000 in August 2005. The 816 houses sold last month was up from 773 in July.

- NZPA