Little optimism in wake of REINZ report

Commenting in the wake of the December Real Estate Institute (REINZ) report - which found both sales and prices had fallen - Kevans said, "Slow sales have kept inventory levels elevated, meaning that the backlog of unsold property sitting on the market will depress house prices further in coming quarters."

 "Indeed, no dramatic revival is anticipated this year. The fundamentals for the housing market are soft, as households continue to shy away from taking on additional debt," she said.

Kevans also highlighted Budget changes to the tax treatment of investment property as a factor in the slowing market.

"Property sales fell from 5,138 in November to 4,397 in December, to be well below the 5,206 sales recorded in May when the tax changes were introduced."