REINZ median house sale price and volumes steady in July from June (Update 4)

New Zealand's median house sale price in July was NZ$340,000, the same as in June 2009 and July 2008, the Real Estate Institute of New Zealand (REINZ) said. (Update 4 with new stratified house price inflation measure.) The level of nationwide residential property sales was also similar to June 2009 with 6,014 sales during July, down slightly from 6,040 in June and up from the 4,489 a year ago. "The market has certainly recovered well from the lows of mid-2008," REINZ President Mike Elford said. "You wouldn't call it brilliant, but there are positive signs such as more listing stock," Elford said. The median sale price of NZ$340,000 was still below the NZ$345,000 in July 2007, but was double the median price in July 2001, when there were 6,078 sales nationwide. The REINZ's median days to sell figure was 37 in July, from 41 in June 2009 and 58 a year ago. Main centresIn Auckland, the median sale price was up NZ$5,000 from June to NZ$440,000 and sales were steady at 2,024 (from 2,032). This compared to a median price of NZ$421,000 and 1,411 sales in July 2008. Elford said the 4.5% rise in the Auckland median price over the year was a sign of an improving market. The median price in Wellington fell NZ$5,000 over the month to NZ$370,000 while sales fell 8.3% to 618. This compared to a median price of NZ$371,000 and 503 sales in July 2008. In Canterbury/Westland, the median sale price was up NZ$2,000 to NZ$297,000 over the month, with 905 sales, up from 889 in June. This compared to a median price of NZ$300,000 and 675 sales a year ago. Reaction ASB economist Jane Turner said the July data confirmed the recent recovery in the housing market remained firm and that declines in house prices had come to an end. "Nonetheless, the absolute level of demand remains below average. 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," Turner said. "Houses remain relatively expensive compared to incomes and rents, and future house price increases are likely to be moderate "“ particularly compared to the previous boom," she said. New house price inflation index The REINZ is now publishing a new stratified house price inflation index (see interactive chart below) that was created with the help of the Reserve Bank. The new index rose 1% in July from June, and was up 0.9% from July 2008, which was the first annual increase since March 2008, REINZ said. The new national stratified median house price in July was NZ$353,055. This compared to the non-stratified median price of NZ$340,000. In July, the index was down 7.3% from its peak of NZ$380,900 in November 2007. However this was up from the index's trough in January this year, when it was down 11.4%. November 2007 also saw the peak in the REINZ median house price. The REINZ said that monthly movements in the index could be volatile and so also provide a three month average figure, similar to what Quotable Value does with its house value index. The index rose 2.2% in the three months to July from the three month to June. This compared to QV's figures showing house values rose 0.7% in the same period.