More houses were sold in Queenstown last month than in June and sales were also up 19% on July last year.
The July 2008 figures showed the resort's housing market could have stabilised, Real Estate Institute of New Zealand Central Otago Lakes District spokesman Adrian Snow said.
He said there were 43 dwelling sales in July 2008 - a 9% increase on June this year, when 39 dwelling sales were recorded.
More sections sold were also sold. Mr Snow said there were six section sales recorded last month, up from the previous two months, when three sections were recorded each month.
"Six sales remains a very weak performance compared with July 2007 at 17, or 65% down on the same month last year. However, this month's results should be read as positive news, albeit only just."
A 1% increase was also recorded in the median dwelling sales value, bringing it to $586,667, but was still down slightly from July 2007's $592,500.
"Because of the small data set, we need to take care with interpreting the median value, but this statistic is showing us that the property market is remaining notably stable, although travelling at a much lower level of activity."
Mr Snow said winter had brought Queenstown's seasonally expected lift in activity, with all realtors noting increased inquiries, predominantly in the form of walk-in traffic.
"Our Australian cousins are featuring strongly in our buyer make-up.
"With the Australian dollar currently about 25% stronger than the NZ dollar, Australian buyers in a position to purchase property have clearly noted that the New Zealand market is offering value to them."
There was still a "reasonable choice" of properties for sale and buyers were maximising the perceived advantage in the market, so "on the whole" downwards pressure on price in marketing and negotiations remained, he said.
"The downward-moving official cash rate and the New Zealand dollar are both seen as positive indicators, although they are both lights that are far off at the end of the tunnel."
