Economic uncertainty continues to dampen the property market as national housing turnover dropped for the month of June - with commentators highlighting a shortage of new stock on the market.
ASB economist Jane Turner said while house sales had lifted 40% from lows recorded last year, housing turnover remained slightly below average, but low interest rates were now stimulating some interest.
"However, the overall recovery remains reasonably modest. On a per-capita basis the number of house sales remains low, as economic uncertainties continue to weigh on confidence," she said in a statement.
Real Estate Institute of New Zealand statistics showed national turnover declined from 6291 homes sold in May to 6040 in June, but returned a slight increase in median prices, up from $337,000 to $340,000.
The inverse was reported in Otago, with turnover up from 215 homes sold in May to 232 for June - the only district of 12 to record an increase - while the median price eased from $220,000 to $219,150.
Real estate institute president Mike Elford said the expected winter season downturn was not as marked as expected.
The downturn was not because people were not buying properties, but rather they were not coming on the market.
"As noted last month, people are sitting tight on their properties, both because people tend not to move house in cold weather and because of their continued uncertainty around where the market is heading,"he said in a statement.
Nationally, homes were selling faster, from 53 days in May to 41 in June, but there was still a "reluctance" of would-be sellers to put their houses on the market in "what they perceive as a buyer's market", Mr Elford said.
"Shortage of stock remains the biggest issue facing the industry at the moment," he said.
Ms Turner said there had been concern the number of new listings "remains weak", but highlighted the stock of unsold homes remained "slightly" above average, not at "low supply" levels.
"When house prices stabilise, potential sellers might be tempted back into the market," she said.
