House values gain in 09
The State-owned property valuer said house values are now only 4.9% below their peak in late 2007. The average sales price rose to $404,671 in December from $393,373 a month earlier.
"2009 did not bring the continued correction to property values that many were expecting, but housing affordability did improve for a short time while values had dropped and interest rates reached their low," said spokeswoman Glenda Whitehead.
"The improvement in market conditions is on the back of lower interest rates, improved consumer confidence, an improving employment situation and no doubt the old Kiwi adage that residential property is a good long-term investment, as it is better understood by many than the alternative investment products."
The revival in the property market came after house values dropped 9.6% in April from the market peak, and helped underpin the recovery in the economy, which dragged itself out of its deepest recession since 1991 in the second quarter of last year.
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