2009.01.1503:21:00UTC+00New Zealand REINZ House Prices Fall In December

Thursday, the Real Estate Institute of New Zealand or REINZ said the national median house prices declined 4.78% year-on-year to N$ 328,500 in December. The value of total residential sales nationwide in December was NZ$ 1,705,409,595.

"The residential real estate market has slipped back to where it was a few years ago, the REINZ said in a statement.

REINZ president, Mike Elford noted that the downturn of the past few months is, in part, evidence of a "correction" of what in some areas were wrongly inflated values.

In December, the number of homes sold nationwide was 4,302, slightly up from November's sales of 4,279, but down from 5,597 sold in the previous year.

Elford said, "The forthcoming Government Economic Summit will be looking at ways of encouraging positivity in the economy and housing is always a good way to get things going." He noted that lower interest rates and tax cuts will increase people's confidence.

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