House prices and sales volumes steady

The median house price was unchanged at $340,000 in July from the previous month, according to Real Estate Institute data. The volume of sales dipped to 6,014 from 6,040 in June, while the length of time it took to sell a house fell to 37 days from 41 days over the period.  

"July's data confirms the recent recovery in the housing market remains firm and that declines in house prices have come to an end," said Jane Turner, economist at ASB. "While population growth and low interest rates are supportive for the housing market, rising unemployment and ongoing economic uncertainty continues to dampen the degree of optimism."  

The housing market has shown signs of stabilising for several months, with QV Valuations posting its third straight improvement in values earlier this week. Last month, central bank Governor Alan Bollard said rising net migration and lower interest rates were stoking demand for property and economists say the resurgent market has hindered Bollard's ability to cut rates further for fear of reigniting a housing bubble.  

REINZ president Mike Elford said while the results weren't "brilliant," there were "positive signs" such as more listings.