House prices edging higher: REINZ

The median house price rose to $346,750 in August from $340,000 a month earlier, according to Real Estate Institute of New Zealand (REINZ) data. The volume of sales slipped to 5,878 from 6,014 in July, while the length of time it took to sell a house fell to 34 days from 37 days over the period.  

"Recent stabilisation in the housing market is likely to tempt potential sellers back into the market restoring the balance between supply and demand," said Jane Turner, economist at ASB.

"We continue to expect house price inflation will remain subdued over the next few years, with appetite for housing tempered by rising interest rates, low affordability and rising unemployment."  

Last week central bank Governor Alan Bollard said the house market was helping prop up the economic recovery, but said the current resurgence in property was probably a temporary phenomenon that was artificially supported by an unusually low number of dwellings on offer over the past four months.