For Sale Sign Photo: RNZ / Angus Dreaver
More houses changed hands in May, but for generally lower prices, and buyers are taking their time about their decisions, the Real Estate Institute (REINZ) says.
REINZ data shows that, at a national level, the median house price dropped 0.9 percent year-on-year in May, to $763,000.
Auckland's price dropped 3.5 percent. Excluding the biggest city, the median price was stable.
The number of properties sold rose 8.9 percent compared to a year earlier, to 7166.
Northland had the highest increase in sales count, up 33.3 percent year-on-year, from 171 to 228 sales. Tasman followed with a 29.7 percent year-on-year increase, from 64 to 83 sales.
Canterbury had the largest number of properties sold in any May month since 2006 and Tasman since 2013.
Listings were up almost 3 percent.
The median number of days to sell properties lifted by three to 47.
REINZ said this reflected buyer caution. "Purchasers are taking longer to commit, which local agents suggest could be due to a lack of buyer urgency and the fact that buyers have time to find a property that best suits them."
The institute's house price index, which is designed to smooth out variation caused by the make-up of sales, was up 0.1 percent year-on-year and down 0.6 percent compared to April.
Ed McKnight, property economist at Opes Partners, said there were signs of increasing demand and supply in the market.
"Lower interest rates are drawing more people into the market. But the number of property listings is high. That's in part because of Kiwis moving overseas and selling up in New Zealand.
"Because if both demand goes up you get more sales and higher prices. If supply goes up you get more sales and lower prices.
"So the pricing effects are cancelling each other out and sales are recovering well from the bottom of the market."
Kelvin Davidson, chief economist at Cotality, said sellers had already been willing to meet the market. the number of deals had returned to normal for this time of year after a long period of sluggishness.
"At face value, another rise in sales alongside a continued flat patch for prices would add to the case for thinking that more sellers who have sitting on the market for a while are now just keen to move on.
"That said, there's nothing to suggest sellers are capitulating; yes, there's a lot of listings and buyers still have the upper hand, but I'd say most vendors are still willing to be patient."
Prices remain 15.8 percent below their previous peak.
