By CHRIS DANIELS
House prices are down but the national property market appears to be climbing out of a slump as sales increase.
Nearly 100 more homes were sold last month than the 5424 in May, although the median price dropped $2000 to $170,000.
Real Estate Institute president Max Oliver said that given interest rates, a sales drop from last year was expected, but he was pleased to see a recovery from a very slow spell in April.
When more houses were sold they were often in the lower price range, which had accounted for the drop in median values.
"There's no great worry about it. We would be concerned if the median stayed down in the next month."
The Auckland property market, which accounted for a third of all sales, had been static for four years, having a big impact on the national median price.
Interest rate stability over the past month had encouraged a feeling that the market was starting to move again, Mr Oliver said.
The North Shore was the only Auckland area where the median price rose - from $255,000 to $277,500. More homes were sold in Manukau last month than in May, but the median price dropped more than $16,000.
"After a very promising first quarter of the year, the sales volume of 5238 in April was a great disappointment to many.
"May and June have seen an improvement from that point, and should the recent stability in mortgage interest rates continue, we believe the upturn in sales should be ongoing."
Agents were looking forward to better weather, when sales tended to pick up.
myproperty.co.nz
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