Caution remains the watchword for property - ANZ

House sales volumes from the Real Estate Institute (REINZ) maintained the improvement shown in November, rising 3.9%, and the REINZ House Price Index remained broadly unchanged in seasonally adjusted terms, up 0.2%.

However, these rises come off historically low levels, with residential turnover remaining low in relation to stock and against a year ago (down 11.3%).

"A mood of caution still pervades the housing market, with prices flat lining," ANZ said.

"The market remains caught between conflicting drivers; fixing balance sheets versus a growing gap between demand and supply."