Photo: RNZ / Maree Mahony
The median national house price is holding steady as the number of sales increase.
The Real Estate Institute House Price Index for May indicates the value of the housing market rose 2.3 percent on the year before.
However, the national median sale price fell slightly by 1.3 percent on the year earlier to $770,000 from $780,000.
Still, 10 out of 16 regions saw price increases with West Coast leading the way with a 14 percent increase to $405,000.
REINZ chief executive Jen Baird said the total number of sales rose last month, reflecting an increase in stock levels and new listings.
"Nationally, seasonally adjusted figures show a 5.2 percent increase, indicating that year-on-year sales counts performed slightly above expectations -- an encouraging sign despite the current economic challenges," Baird said.
The national number of listings rose 25 percent on the year earlier, with notable increases in Wellington (+103 percent), Hawke's Bay (+34 percent), Marlborough (+33 percent), Auckland (+30 percent), Otago (+31 percent) and Waikato (+21 percent).
Stock levels increased by 22 percent.
"With a continued flow of new options coming to the market adding to a large level of stock this does provide a lot of choice for buyers and a sense that they can take their time to make decisions," Baird said.
She said the 8 percent annual increase in the number of sales was a contrast to current challenges in securing finance, changes in the job market, and the wait on changes to the Reserve Bank's official cash rate (OCR) and mortgage interest rates.
"With a continued flow of new options coming to the market adding to a large level of stock this does provide a lot of choice for buyers and a sense that they can take their time to make decisions," she said.
"Others are snapping up properties at attractive prices before the expected slowing during the winter months and the potential reemergence of investors mid-year.
"It might be a few months yet before the residual impact of readjustments post the government's 100-day plan and budget are felt. Indeed, there are cool economic breezes being felt but there are signs of more positive activity ahead."
