File photo. Photo: RNZ / Diego Opatowski
There are growing signs the housing market is beginning to improve with sales numbers on the rise.
The Real Estate Institute (REINZ) House Price Index (HPI) for New Zealand, which measured the changing value of residential property nationwide, showed an annual decrease of 11 percent in May, or down 10 percent when Auckland was excluded.
While some regions saw an increase in sales others remained subdued.
"We are seeing glimpses of positivity, especially in the regions following the Reserve Bank's announcement of easing loan-to-value restrictions and the stabilising of interest rates," REINZ chief executive Jen Baird said.
"It's clear that current high interest rates combined with a tight economy, are still influencing the market as buyers continue to act with caution while economic headwinds play out."
The median price fell 8.2 percent year-on-year to $780,000 while the median number of days to sell rose to 49 last month, an increase of six days on the year earlier.
When Auckland was excluded, the median price fell 6.5 percent to $685,000.
Nelson had the biggest annual median price rise at 2.7 percent.
"Inventory levels look to have stabilised with only a slight increase in stock levels," Baird said.
"We have seen low levels of property coming to market across the country for much of this year and, as sales volumes are back at more normal levels, we may be seeing the beginning of a shift in the balance of supply vs demand."
Seven regions, including Northland, Auckland, Waikato, Wellington, Tasman, Marlborough and Southland each had a 30 percent increase or more in sales volumes over the month before, with Marlborough topping the list with a 67 percent increase in sales.