House prices continued to fall in June as industry figures showed sales numbers easing to 16-year lows.
Real Estate Institute (REINZ) figures published on Friday put the national median price at $340,000 last month, down 1.4 per cent from May and 2.2 per cent from a year earlier.
June sales were down to 4305, from 4372 in April and 7474 a year earlier. It was the lowest monthly sales total since the REINZ started the current data series in January 1992.
Houses were taking an average of 53 days to sell in June, up from 49 days in May and 30 days a year earlier.
REINZ national president Murray Cleland said the decline was probably not as pronounced as predicted by some commentators.
"The market is finding its own level quite well and there is certainly no indication of any significant slump in values," he said.
At the current rate of easing in prices, it was possible the market might bottom out in the next couple of months and then rally a little in spring.
Deutsche Bank chief economist Darren Gibbs said that after adjusting for seasonal and trading day factors, he estimated the number of house sales rebounded month-on-month 19 per cent in June after plunging 15 per cent in May.
"At least in part, the rebound seems to reflect the beginnings of a coming together of buyers and sellers, with the median sales price falling during the month," Mr Gibbs said.
Prices were showing a little more resilience than had been expected based on anecdotal evidence.
But buyers for the most part were remaining on the sidelines pending an expected decline in home prices and lower mortgage interest rates.
Deutsche Bank continued to expect a sizeable decline in house prices in coming months as sellers became more realistic about pricing in the face of ongoing increases in property listing numbers and long selling times.
The figures showed prices fell in June from a year earlier in nine of 12 regions.
That included Auckland where the median price was down 2.24 per cent to $435,000, while in Waikato/BOP it was down 2.76 per cent to $316,000.
In Wellington the price was down 2.26 percent from a year earlier to $366,500, and in Canterbury/Westland it was down 2.04 per cent to $299,000.
REINZ said a relatively liquid lower end to the property market in June had contributed to the fall in the national median price.
Sales of properties under $400,000 were up slightly from 2680 in May to 2708 in June.
Sales of properties between $400,000 and $599,999 dropped from 1041 to 1039, while properties between $600,000 and $999,999 were down from 508 to 427.
People were generally deciding to stay put and deferring decisions on buying and selling until a clearer trend emerged, Mr Cleland said.
"Where values are weaker, the explanation is often that people are selling because they are on employment transfer and our agents report that price expectations are having to be lowered to facilitate faster sales."
