Prices slip, volumes hold in May: REINZ

The median price for homes across the country fell to $337,500 last month, down from $340,000 in April, the institute said in a statement. The length of time taken to sell a house last month was 42 days, unchanged from April. The total number of properties sold edged up to 6,291 from 6,210 in April and up from 4,372 in May 2008.

"With an apparent reluctance to sell in what is perceived as a buyers' market,  people are tending to hunker down and sit tight on their properties," REINZ president Mike Elford said. "This combined with a seasonal trend for people to hibernate rather than put their home on the market in the winter months, has led to an acute shortage of houses on the market," he said.

Reserve Bank Governor Alan Bollard today cited a potential rebound in the housing market among factors that prompted him to keep the official cash rate unchanged at 2.5%, though he qualified the assessment by saying the weak jobs market and high levels of household debt may limit any revival.

QV Valuations data this week showed property values continued to stabilize last month, helped by cheaper mortgage rates. House values fell 8.1% in the 12 months ended May 31, compared to a 9.2% decline in the period through April, according to QV.