New Zealand house prices fell for the 11th month in a row in May, but the rate of decline has slowed as the market showed further signs of stabilising, government agency Quotable Value (QV) said on Monday.
QV's residential house price index fell 8.1 percent in the year through May 31, compared with a 9.2 percent decline in the previous month - the second month in a row the trend in property values has improved. The agency said lower mortgage interest rates had encouraged new home buyers and investors to enter the market.
"The recent stabilisation in values indicates that the wider market is moving toward some form of equilibrium," said QV spokeswoman Glenda Whitehead.
The tentative revival would be tested over the coming winter months, a traditionally quiet time for the market, she said.
The housing market, once a key inflationary concern for the Reserve Bank of New Zealand (RBNZ), has been falling over the past year because of high borrowing costs and prices, while consumers cut their spending because of the deepening recession and rising unemployment.
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