Despite a dip in house prices and sales in Dunedin during the past month, the latest REINZ figures show both are up on the corresponding periods a year ago.
In October, 181 houses were sold in Dunedin at a median price of $255,000.
That compares with 157 houses sold in October last year at a median price of $240,000.
However, it was also a major drop on the 215 houses sold in September this year at a median price of $270,000.
REINZ Otago president Stephen Johnston said the market was "finely balanced" at the moment.
He believed the figures had dropped in the past month because buyers were becoming more discerning.
"The buyers are there, but only if they perceive the price is right. They don't want to pay too much for something. They're shopping around for good-valued properties."
The situation was better in other parts of Otago.
In the Central Otago-Lakes district, 86 houses sold in October, down from the 103 in September, but up on the 79 sold in October last year.
The median price was $483,000 compared with $405,000 in September 2009 and $475,000 in October 2008.
While five fewer houses were sold in Queenstown in October than the 50 sold in September, it was five more than in October 2008.
The median price last month was $555,000, much higher than the $462,000 in September this year and $500,000 in October last year.
In Central Otago, the median price was $372,500 in October, up from $305,000 in September but down on the $395,000 reported in October last year.
Forty-one houses were sold in October this year, up slightly from the 39 sold in October last year, but down on the 53 sold in September 2009.
Sales volume in North Otago remained steady in the past two months with 43 houses sold, and compared with 26 sales in October last year.
The median price rose to $220,000 from $181,000 in September, but was down on the $221,500 in October last year.
The median price in South Otago dipped to $150,000 from $167,500 in September 2009, but it was still up on the median price of $140,000 in October 2008.
The number of sales also increased to 19 houses, up four from October 2008.
Nationwide, October median house prices were at their highest for the past 10 years.
The national median of $355,000 was up nearly 6% on the corresponding figure ($335,000) for October 2008, and up $5000 on the median price for September 2009.
REINZ president Peter McDonald said the steady return of property values was a positive sign.
"The rises aren't, in most cases, dramatic, but slow and steady over the past few months as confidence returns to the market," Mr McDonald said.
"For the first time, we are over the peak of prices in 2007 which is a very reassuring milestone."
Mr McDonald said sales were particularly brisk in Wellington at 27 days, and Canterbury-Westland and Otago where the median selling time was 28 days.
The national average was 31 days.
Central Otago-Lakes was the slowest, with houses taking 59 days to sell.
