The national housing market staged a modest recovery in February compared to January but volumes were halved in earthquake-hit Canterbury, the Real Estate Institute of New Zealand (REINZ) said.
The national median price of $350,000 was unchanged from February last year but was up $10,000 on January. A total of 4502 unconditional sales were reported, up 38 percent on January and up 45 percent when the Canterbury/Westland region was excluded.
But the number of properties sold is down 4.3 percent on February last year.
"February's transaction volumes were always going to be an improvement on January, but the improvement in the raw medians in most districts as well as in the stratified median prices is a positive sign," REINZ chief executive Helen O'Sullivan said.
The Canterbury earthquake in the last week of February has had an impact on the volumes for that area and on the national total, so caution was required in analysing the data, REINZ said.
Some sales reported as going unconditional in February may not complete if there has been substantial property damage and future sales are likely to be conditional on structural and geotechnical assessments, which will take time to complete.
Inability to procure insurance cover was currently the single biggest impediment to transactions in Canterbury.
REINZ said that a recovery in transaction volumes in Auckland and Manawatu/Wanganui in February was encouraging and Auckland's transaction volumes were marginally higher - by just one transaction - than in February 2009.
"Reports from members indicate that although rents are rising in key urban areas and there is a continuing shortage of housing stock, particularly in Auckland, buyers are still being cautious," the report said.
Ms O'Sullivan said that the recent cut in the official cash rate by the Reserve Bank of 50 basis points may provide some encouragement to buyers.
