Otago followed national trends last month as the residential property market staged "an unexpected recovery", the Real Estate Institute of New Zealand says.
Figures released by REINZ this week show nine of 12 districts surveyed recorded increases in their median residential sale price in July.
REINZ national president Murray Cleland said the "notable exception" in the resurgent market was Auckland, where the median house price fell from $435,000 in June to $421,000.
Median house prices also dropped in Southland, from $182,500 in June to $172,000. There were 129 sales last month, down from 152 in June.
The Otago market lifted slightly as the median Dunedin City price from 180 house sales increased from $244,600 in June to $249,500.
However, REINZ Otago District president Stephen Johnston said Dunedin's figures could be skewed by the inclusion of property sales at a Northeast Valley development which were completed this month.
"The issuing of title on sales made up to 12 to 15 months ago on 10 or so properties at the Gardens View development in the $400,000 range and a few over $500,000 could have skewed the [median] price in the upper end of the market," Mr Johnston said.
A mood of "cautious optimism" prevailed in the market, with some buyers "recognising they were getting good value in relation to current prices", he said.
"But it is still quiet and very hard from real estate perspective, and people are working hard for results.
Much of the market is driven by first-home buyers, and some are still holding back because of high interest rates."
In Central Otago, the median sale price for 26 residential properties rose from $440,000 in June to $497,500 in July.
In Queenstown, 43 houses sold last month for a median price of $586,667, up from $580,000 in June.
Although prices had increased since July 2007, when the median sale price was $364,750, the number of houses sold was well down from the 48 sold at the corresponding time last year.
REINZ Queenstown spokesman Adrian Snow said although the median was derived from a small number of sales, the market might have entered a "phase of stability."
"I think the market is remarkably stable, with prices holding around the $580,000 mark. It is pleasing after the reduced sales volume we were seeing at the start of the year."
Mr Snow also said first home buyers were "very visible" in the market.
There was a "high degree of [buyer] hesitancy" in the first and second quarters this year as potential buyers waited to see if a deeper recession would cause house prices to fall further, he said.
"But it is arguably the best opportunity first time buyers will get for a while, so our advice is don't hold your breath for further corrections."
In South Otago the median price decreased to $130,000 from $151,000 in June over 11 sales.
In North Otago 23 houses sold (down from 27 in June) at a median price of $205,000 - up $5000 from the previous month.
And in East Otago, three houses sold June and July at a median price of $135,000, down from $233,000 in June.
