A further fall in Dunedin house prices last month reflected the weak overall national economy, commentators said.
But they also said the figures covered a traditionally quiet holiday period and should be interpreted cautiously.
Latest monthly figures released yesterday by the Real Estate Institute of New Zealand reflected "muted activity" nationally, including a 2.9% drop in the national median house price for the month compared with January last year. This is still 4.6% above the 2009 figure.
Institute chief executive Helen O'Sullivan said the "traditionally subdued" month of January had been marked by the lowest yet level of new listings, and turnover had also fallen to a new low.
Nevertheless, prospects for returns on rental investments were better, with little increase in the overall housing stock expected in the short term, she said.
Latest figures showed the median house price in Dunedin City decreased 13.8% to $221,800 last month, from $257,500 in January last year. This was also down on $249,500 in December last year.
Dunedin residential sales, at 106, were down on 122 in January last year and 179 in December.
Liz Nidd, the institute's spokeswoman for Dunedin, said the Dunedin figures reflected the weak national economy.
Buyers were still being cautious on big ticket items, as they had been in their retail shopping, but a good number of quality homes was available in the city and she remained optimistic about future market prospects.
Ms Nidd urged caution about interpreting the latest figures, given this was a traditionally quiet period, and the relatively small number of sales transactions could give a false impression.
In the Otago district, including Dunedin but excluding the Central Otago Lakes area, the median house price, at $205,500, was down 16.7% on the $247,500 figure in January last year, and was down from an earlier rise to $235,000 in December.
Across that Otago area, including North, West and South Otago, 138 dwellings sold last month, down on 151 in January last year and 231 in December.
Throughout New Zealand the median fall compared with January last year was greatest in this district, with, by contrast, the Southland median (at $180,750) down only 1% below the $182,500 median in January last year.
In the Central Otago Lakes district - which includes Queenstown, Wanaka, Cromwell and Alexandra - the residential price median, at $402,500, strengthened from $400,000 in December but was down slightly (1.8%) from $410,000 in January last year. Sales, at 54, were down on 67 in December and 58 in January last year.
The Queenstown median price rose from $429,000 last December to $485,000 last month, but this was still far below the $531,250 median in January last year. Sales fell from 40 in December to 30 last month, but were higher than in last January (26).
Adrian Snow, the institute spokesman for Central Otago Lakes, said buyers remained generally cautious but the market was "relatively stable" and a "flat recovery" was continuing.
In Invercargill, the median price rose to $197,500 last month from $185,000 in January last year.
