Housing market makes slow start to year

Reinz national president Howard Morley said despite a rise in the national median selling price, a fall in the number of sales and other indicators "suggested a degree of caution on the part of both buyers and sellers".

The national median selling price for January rose to $265,000 from $260,000 in December, but turnover was down to 7078 sales in January compared with 8377 in December and 8404 in January 2004. Four of the eleven regions reported reduced median prices while the remaining seven showed modest increases.

Mr Morley said houses were remaining on the market for longer with the institute's "days to sell" measure lengthening to 38 in January from 29 in December.

However, he said the January figures would not necessarily be an indicator of what was to come this year.

"January is always one of the quieter months and it will be another month or two before we see a trend for the rest of the year," Mr Morley said in a statement.

Last a week a new monthly survey of property values by Quotable Value suggested the regions that benefited earliest and strongest from New Zealand's recent property boom, particularly central Auckland and Nelson city were cooling off.

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