QV's residential house price index rose 1 percent in the year to November, compared with a 0.2 percent rise in October, which had been the first rise in values in 16 months.
The market has been improving for eight straight months, but activity has been flat and an expected pick-up after winter has failed to occur with prospective sellers being seen to hold on to their properties.
'There are signs in recent weeks that there are more properties coming on to the market, especially in the main centres,' QV valuation manager Glenda Whitehead said in a statement.
An increase in supply would likely ease some of the upward pressure on prices.
'We expect that January and February will lead to increases in activity and lead to more balanced market conditions,' said Whitehead.
The housing market, once a major inflationary concern for the Reserve Bank of New Zealand (RBNZ), peaked in late 2007, but fell sharply due to high borrowing costs and prices, while consumers cut spending amid a deepening recession and rising unemployment.
There have been signs of improvement in the market in recent months, on the back of the economy emerging from five quarters of recession in the three months to June with 0.1 percent growth.
The central bank slashed interest rates to a record low 2.5 percent, and has pledged to keep them there until the second half of 2010 to help the economy recover. See
Fixed-term lending rates for two years or longer have gradually risen as investors lock in low rates in the expectation the RBNZ could hike rates as soon as early next year.
QV said the average sale price rose 1 percent to NZ$393,373 ($285,0053) from NZ$389,198 between November and October.
House prices in Auckland, the biggest city, were 3.1 higher in November from a year earlier, compared with a 2.5 percent rise in October, while the capital, Wellington, was up 2.9 percent from the previous month's 1.6 percent gain.
However, QV also noted that in regional cities prices had barely moved or even fallen
National values were 4.1 percent higher than their low in April this year, but were still 5.9 percent below the market high in late 2007.
The monthly residential price report is based on sale prices of properties over the past three months compared with sales over the same period a year earlier. The data is not seasonally adjusted.
Industry data from the Real Estate Institute of New Zealand for the month is due next week.
($1=NZ$1.38)
(Reporting by Gyles Beckford; Editing by Mark Bendeich)
((gyles.beckford@reuters.com ; +64 4 471 4231; Reuters Messaging: gyles.beckford.reuters.com@reuters.net)) Keywords: NEWZEALAND ECONOMY/HOUSING (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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