Median house prices have been "holding steady" in recent weeks with a 1.3% month-on-month increase in August, according to Real Estate Institute (REINZ) data.
While the overall sales volume slightly declined, several regions reported increases in activity, and year-on-year listing numbers continue to rise, according to REINZ.
The national median price decreased by 0.6% year-on-year, from $770,000 to $765,000, and increased by 1.3% month-on-month. For New Zealand excluding Auckland, the median price increased 1.6% year-on-year from $670,000 to $681,000.
REINZ chief executive Jen Baird said August had provided a "sense of confidence and positivity" to the property market.
"August data shows a level of stability in the market. Despite a marginal 0.6%, or $5000, decrease in national median prices year-on-year, we're seeing prices hold steady with a 1.3% increase month-on-month," she said.
"This month, we saw further signs of a change in market sentiment, with local agents reporting increased confidence in vendors and purchasers, the return of investors, and increased activity, particularly at open homes over the last two weeks of August.
"They attribute this change to the decline in interest rates.
"However, it would be an overstatement to say that we are at a turning point in the market — we merely have our indicators on. While there is a rise in optimism and confidence, we are hopeful that better times are still ahead."
Six of the sixteen regions had a median price increase year-on-year, with Otago leading the way, followed closely by the West Coast.
Eight regions increased month-on-month, with the "most notable" changes observed in Marlborough and Gisborne.
"We continue to see an increase in the average number of properties listed. Although the inventory is down slightly compared to last month, the volume of properties for sale continues to provide a lot of choice for buyers," Baird added.
"There is an expectation that rates will fall further towards the end of this year, providing the much-needed relief to property owners and those in the position to buy, which may increase sales volumes nationwide."
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